A row of Fiat Chrysler Automobiles (FCA) 2017 Chrysler Pacifica minivan vehicles are displayed for sale at a car dealership in Moline, Illinois, on July 1, 2017.
Daniel Acker | Bloomberg | Getty Images
Fiat Chrysler Automobiles has submitted a proposal for a merger with Groupe Renault, as CNBC reported earlier.
According to a statement from Fiat Chrysler Automobiles, the combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. A board of governors would hold a majority of independent directors.
The joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world's third largest car manufacturer.
Fiat Chrylser said the combined entity would be "carried out as a merger transaction under a Dutch parent company."
The press release from Fiat Chrysler added that there would be no plant closures as a reults of the tie-up and the union should provide an opportunity to lead in the development of electric and autonomous vehicles
During Fiat Chrysler's most recent earnings call, CEO Mike Manley was asked about the possibility of merging with another automaker and told analysts. "We are going into an environment where there are going to be opportunities."
Whether Fiat Chrysler ultimately joins the Nissan-Renault alliance remains unclear.
This is breaking news. Please check back for updates.
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