Fiat Chrysler CEO hopes to seal PSA merger by early 2021

BRUSSELS -- Fiat Chrysler Automobiles CEO Michael Manley said on Wednesday merger talks with Peugeot owner PSA to create the world's No. 4 automaker are progressing well and he hopes to have a deal sealed within 12-14 months.

Speaking to Reuters on the sidelines of an industry meeting, he said he doesn't expect any major obstacles that could delay a final agreement.

"Talks are progressing really well," Manley said about negotiations with the French carmaker.

His comments come a month after the two carmakers agreed a binding deal to combine forces in a deal worth about $50 billion in response to a slowdown in global demand and mounting costs of making cleaner vehicles amid tighter emissions regulations.

Manley's timeline for completing the deal by early 2021 is in line with a forecast made by the companies in December.

FCA and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms -- the technological underpinnings of a vehicle -- will fit which products in a combined company.

Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said.

"That global platform is an elusive beast," he added. "This concept of a massive global platform in my mind is almost a myth but that doesn’t mean to say we’re not going to recruit significant volume."