PARIS -- Fiat Chrysler Automobiles has made a "transformative merger" proposal to French peer Renault, FCA said on Monday.
The deal would create an automaker with a strong presence across key regions, automotive markets and technologies, generating 5 billion euros ($5.6 billion) in annual savings, FCA said in a statement.
The "broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream," FCA said.
Renault said in a statement Monday that its board had reviewed FCA's "friendly proposal" and had decided to "study with interest" the opportunity of such a business combination.
The merger would bring FCA's brands such as Jeep, Chrysler, Alfa Romeo and Fiat under a common umbrella with Renault Group's Renault, Dacia and Lada brands.