The move is one of the last steps towards creating the world's fourth-largest carmaker. The new firm will have the capacity to produce 8.7 million cars a year.

Shareholders in PSA, the French parent company of carmakers Peugeot, Citroen and Opel, approved a planned merger with Italo-American Fiat Chrysler Automobiles (FCA) on Monday.

The online meeting follows the approval of the mega-merger by European Union competition watchdogs in December 2020.

A merger would create the world's fourth-largest carmaker, set to be called Stellantis.

The company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan.

What will change?

It will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo — pooling companies that have helped define the industry in the United States, France and Italy.

Individual brand names such as Opel, Peugeot, Citroen, Chrysler, Jeep, Alfa Romeo, Lancia, Abarth and Dodge will continue to exist.

Under the merger, PSA will retain the power advantage as its CEO, Carlos Tavares will run Stellantis and hold the tie-breaking vote on the 11-seat board.

Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat Chrysler's biggest shareholder, will be the Stellantis chairman.

A long time in the making

Such a deal was long wanted by Fiat Chrysler's long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

PSA and FCA eventually decided on their merger plans in December 2019.

According to earlier information, the plans should be implemented by the end of March 2021 at the latest.