Long road ahead as Fiat Chrysler, Peugeot agree to $50 billion merger

Fiat Chrysler and Peugeot maker PSA face the challenge of winning over regulators and delivering on a pledge to slash costs without closing factories after sealing a binding deal to create the world’s fourth biggest carmaker. Both tasks are likely to prove difficult, as two of the industry’s oldest dynasties try to combine major European operations under the gaze of politicians and trade unions who have vowed to resist any move to cut jobs. Success is vital to help both companies cope with a slowdown in demand and the cost of making cleaner vehicles to meet tougher emissions regulations. In a sign of the pressures on the wider industry, Sweden’s Volvo AB agreed on Wednesday to sell its Japan-based UD Trucks business to Isuzu Motors and share technology to help cut costs.