Fiat Chrysler has made a "transformative" merger proposal for French carmaker Renault.
The combined business would be 50% owned by Fiat shareholders and 50% by Renault stockholders.
The carmaker said the merger would create a global automotive leader, with 8.7 million vehicle sales.
Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles.
Back in the day it was Austin, Morris, Wolseley, and Riley. Jaguar and Land Rover. Elsewhere it was DKW, NSU, and Auto Union. Now it is the big players. The motor industry continually has to re-invent itself to survive.