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Report: Fiat Chrysler, Peugeot aim to reach merger agreement within a week

Fiat Chrysler Automobiles NV and Peugeot SA hope to wrap up the details of their planned merger in the coming week, Bloomberg News reported Dec. 12, citing unnamed sources not authorized to discuss the matter publicly.

The merger of the two carmakers, also known as FCA and Groupe PSA, respectively, would create the world's third-largest automaker by unit sales. Analysts have welcomed the merger, noting the opportunities for both companies to address their respective weaknesses and derive savings through sharing technology and economies of scale.

More than 100 managers from the companies are involved in ironing out the details of a memorandum of understanding after a preliminary agreement that the companies would merge, announced Oct. 30, the sources told Bloomberg.

Spokespersons at both Fiat and Peugeot said they had no comment on the report.

In a separate development, the European Automobile Manufacturers' Association announced Dec. 12 that it had named FCA CEO Michael Manley president of the organization which lobbies European lawmakers on behalf of the continent's automakers. Manley takes over from Peugeot's Carlos Tavares.