Yes, you read that headline right.

Groupe PSA, which includes Peugeot, Citroen, DS, Opel, and Vauxhall, has joined forces with Italian-American automotive giant, Fiat Chrysler Automobiles (FCA). FCA owns brands such as Chrysler, Dodge, Jeep, Ram, Alfa Romeo, Fiat, Fiat Commercial, Maserati, Abarth, and Lancia. This perhaps is one of the biggest and shocking announcements in motoring this year.

Aimed to be a partnership of equals, both companies have acquired a 50:50 stake in each other. Combined, these two automobile giants are set to become the fourth largest automaker in the world today. They will be sharing research and development, platforms, powertrains, technology, and many more.

For now, Peugeot and FCA have yet to finalize the terms of the Memorandum of Agreement but the board members of the two automakers have unanimously agreed to work together. Groupe PSA CEO Carlos Tavares is touted to run the business side of things, while FCA CEO John Elkann is set to become the merger's chairman. The two executives will hold those posts for the next five years.

“This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together,” said Tavares

"I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company," added Manley.

It's not the first time FCA had tried to do a merger with a French automaker. It's worth noting that, a few months ago, Renault and FCA had tried to get into a merger, but ultimately dropped at the eleventh hour. It has been said that it was the French government that made the supposed deal unfavorable for both parties. It seems that the French government favors this deal over the one made with Renault.

Once the ink has dried on the Memorandum of Agreement, this merger is set to have 15 brands under their wing. Their product portfolio spans just about every vehicle segment from subcompact economy cars, all the way to commercial vehicles. It is projected that the two will have a combined sales output of 8.7 million vehicles worldwide with $190 billion in turnover.