Fiat Chrysler and PSA reportedly have told workers they would sign a binding merger agreement in coming weeks.
Two separate internal communications, obtained by the Reuters news agency, told employees of each automaker over 50 people were involved in the merger process.
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Both are in talks to finalise a merger which would create the globe's fourth largest automaker.
According to Reuters, the internal documents showed nine working groups had been established, led by FCA group treasurer and global head of business development David Ostermann and PSA executive vice president programme and strategy Olivier Bourges.
The news agency noted FCA chairman John Elkann had last week said he was not worried by a shock lawsuit from General Motors and he was confident of reaching a binding merger deal with PSA by the end of this year.
