Rome - Fiat Chrysler is proposing a 50-50 merger with Renault to create the world's third-largest automotive group behind Volkswagen and Toyota.
The combination, accounting for 8.7 million annual sales, would have "a strong market presence in key regions" and a "broad and complementary brand portfolio," FCA said in a statement on Monday.
Renault's core market is Europe, but it has a good footprint in Asia through its alliance with Japanese carmakers Nissan and Mitsubishi, while FCA is strongest in North and Latin America.
If Nissan and Mitsubishi are counted in, the FCA-Renault tie-up would create the world's largest carmaker with more than 15 million annual sales, FCA said.
Renault and FCA "would be a world leader in [electric] technologies, premium brands, SUVs, pickup trucks and light commercial vehicles," the Italo-American company said.