Fiat Chrysler expected to announce merger with Peugeot-owner PSA

Fiat Chrysler and Peugeot-maker PSA Group of France are moving forward with a merger that is expected to be announced Thursday, CNBC reports.

The big picture: Last May, Fiat Chrysler submitted a proposal for a 50-50 merger with Renault, but the deal couldn't get off the ground without the French government's approval, a major shareholder in Renault. However, the new talks between Fiat and Peugeot are fluid and a final deal may not even be reached.

Our thought bubble via Axios' Joann Muller: Fiat Chrysler's talks with PSA could be a way to leverage Renault to restart negotiations. The Renault deal made more sense than this possibility.

• The bottom line per WSJ: "A deal would give Fiat Chrysler more exposure to Europe, where Peugeot sold 2.5 million vehicles last year, compared with one million for Fiat Chrysler. The Italian-American company, however, has tried in recent years to lessen its dependence on the continent."

Go deeper: Another marriage scuttled, Fiat Chrysler forges ahead