Fiat Chrysler CEO Manley will be part of new group after PSA merger, Elkann says

MILAN -- Fiat Chrysler Automobiles CEO Mike Manley will remain with the new group set to result from a planned merger with PSA Group, FCA Chairman John Elkann said.

In a letter to FCA employees on Wednesday, the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest automaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares.

"And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold.

Manley is expected to have a senior executive role in the merged company, Tavares said. 

According to reports, Manley could be named chief operating officer of the merged group.

Elkann -- who will chair the new group -- said there was still much to be done to complete the merger.

"Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said.