PSA and Fiat Chrysler are agreed on a merger that should be shared 50-50, says in a joint statement.

Carmakers Fiat Chrysler (FCA) and PSA Peugeot has signed a merger agreement on the merger of the two parties.

this was stated by The producers in a joint statement.

The new company will be responsible for the production of Alfa Romeo, Chrysler, Citroën, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall, says the opinion.

With the merger will be the company the world's fourth largest automaker, surpassed only by Volkswagen, Renault-Nissan and Toyota.

It will be PSA Peugeot-boss, Carlos Tavares, who will become the executive director for the combined automaker, while FCA chairman John Elkann will become chairman of the board.

The merged company has not yet decided on a common name, it shall inform the executive director. The distribution between the two parties are 50-50, says.

the Merger is expected to be implemented over the next 12 to 15 months. The company will have its headquarters in the Netherlands, but will continue to have major offices in Paris, Milan and New York.

the FCA, which also includes the car makes Jeep, Alfa Romeo and Ram, controlled by the Italian Agnelli family, which founded Fiat. The group has long been looking for a partner.

In the summer, we negotiated with the manufacturer with Renault, but the FCA withdrew its offer before there was an agreement. Here the bid was also a 50-50 distribution.

the Merger comes at a time when the automotive industry in general is facing major challenges.

Car exhausts must comply with increasingly tougher environment - and kllimalovgivning. At the same time need to develop completely new electric vehicles, and the development of completely new standards for security.

/ritzau/AFP