Fiat Chrysler is proposing a merger with French carmaker Renault.
Fiat Chrysler Automobiles said in a statement Monday that the merged company would be 50% owned by FCA shareholders and 50% by Renault shareholders.
The move is aimed at saving billions of dollars for both companies.
Renault's board is meeting outside Paris on Monday morning about the possible merger.
The companies have been in discussions for weeks, as major world carmakers seek ways to save money amid the huge costs of pivoting the industry to electric and autonomous cars.
Renault is already in an alliance with Japan's Nissan and Mitsubishi, but the partnership has been troubled since the November arrest of joint chief Carlos Ghosn. But the partnership would be completely separate from Renault's alliance with Nissan and Mitsubishi.
The French government, which owns 15% of Renault, is cautious about the new merger idea.
The merger requires approval by the boards of Fiat Chrysler and Renault and if approved, the new company would generate estimated sales of 8.7-million vehicles a year, making it the world's third-biggest carmaker.