Fiat Chrysler has proposed a merger with French car manufacturer Renault aimed at saving billions of dollars for both companies.
Fiat Chrysler Automobiles (FCA) said the merged company would be 50% owned by FCA shareholders and 50% by Renault shareholders.
Renault’s board is meeting outside Paris about the possible merger.
The companies have been in discussions for weeks, as major world car makers seek ways to save money amid the huge costs of pivoting the industry to electric and autonomous cars.
Renault is already in an alliance with Japan’s Nissan and Mitsubishi, but the partnership has been troubled since the November arrest of joint chief Carlos Ghosn.
The French government, which owns 15% of Renault, is cautious about the new merger idea.