FCA’s merger with PSA hits a snag in Europe, report says – Roadshow [CNET]

The automakers were reportedly told about the regulatory concerns last week and were given until this Wednesday to provide sufficient explanation or deliver a modified plan to regulators. If the companies don’t, both automakers will face a four-month-long investigation after the initial merger review ends. The European Union gave a June 17 deadline for the preliminary review to wrap up.

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FCA declined to comment on the news and PSA didn’t immediately return a request for comment.

It doesn’t sound like the issue has the potential to derail the merger plans, but it could certainly stall things. Both automakers agreed to combine their companies in a 50/50 merger of equals to tackle a shifting automotive industry. Notably, FCA had long courted automakers to redouble its efforts and consolidate within the industry.

With the merger, the FCA divisions, Jeep, Dodge, Chrysler, Ram, Fiat, Alfa Romeo and Maserati will join PSA Group’s family of brands under one roof. They are Peugeot, Citroen, DS, Vauxhall and Opel. Those last two PSA recently purchased from General Motors in the US automaker’s retreat from Europe.