Possible Fiat and PSA/Peugeot-Citroen merger would make them the worlds number 3 car maker.

In December it was reported that Fiat and PSA/Peugeot-Citroen were looking into the possibility of merging as a way to survive the current financial crisis. Since then, there has been no news and many have concluded the talks have not yielded anything.

However, today Reuters reports that the Agnelli family's is weighing a capital increase of about 2 billion euros ($2.58 billion) for a possible merger with France's PSA Peugeot Citroen. This capital increase is speculated to be needed to keep a controlling interest in Fiat, which the Agnelli Family currently holds a controlling interest of 30%.

If the merger happens, a Fiat-Chrysler-Peugeot group would be the third largest auto company in the world after Toyota and GM with a total production of 8.8 million vehicles (2007 figures).

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http://www.reuters.com/article/privateEquityConsumerGoodsAndRetail/idUSLM14559320090122