MILAN (AP) — The Latest on the merger deal between Fiat Chrysler and PSA Peugeot (all times local):
Fiat Chrysler Automobiles, which has announced a deal to merge with France’s PSA Peugeot, has reported a third-quarter loss despite record earnings in North America.
The Italian-American car company on Thursday reported a loss of 179 million euros (nearly $200 million) due to weaker performance in Europe and by its luxury Maserati division. That compares with a net profit of 564 million euros in the same period of 2018.
Revenues were flat at 27 billion euros. In North America, earnings rose by 4% to 2 billion euros despite an 11% drop in volumes.
Fiat Chrysler narrowed losses in Asia to 10 million euros, while losses in Europe nearly doubled to 55 million euros due to lower sales.
Maserati swung to a loss of 51 million euros, with shipments down by nearly half.
The boards of Fiat Chrysler and PSA Peugeot have approved merging the two companies to create the world’s fourth-largest automaker with a value of about $50 billion.
The formal announcement that the companies have agreed “to work towards a full combination of their respective entities by way of a 50/50 merger” came early Thursday.
The combined companies will be able to share in the cost of developing electric and autonomous vehicles. They’ll also share vehicle technology and save money with greater purchasing power.
The merger decision comes about five months after a similar deal with French automaker Renault fell apart.