Fiat Chrysler Automobiles will merge its parts division with Merles Automobiles, the German auto parts maker announced today.
The new entity will be based in Frankfurt, where Merles has a plant and manufacturing facilities.
The Merles-owned company has been a mainstay of the auto industry for decades, and it will continue to provide a range of products to Fiat Chrysler customers.
Merles Automos parts will include some of Fiat Chrysler’s most popular products, including the Chrysler 200 and Jeep Grand Cherokee.
Merlens’ merger will result in a $1.5 billion transaction, and Merlens said that it will add new jobs in the United States and Europe.
Fiat Chrysler and Merles are working to finalize a number of key strategic agreements, and the two companies will work to ensure that Merlins products will continue as the foundation of the Fiat Chrysler brand and brand identity.
Merlos Automos will continue its operations in Frankfurt and Merle will continue operating its plant in the US, where it manufactures parts for Chrysler’s new Grand Cherokee SUV.
Fiat will also remain the parent company of Merlos Automobiles.
Merlis will continue production of its own products, such as its small-block Chrysler 300, which it introduced in 2012.
Merlus will also produce a variety of Fiat vehicles and will be involved in various business areas.
Merls shares fell 1.4% to 6.98 euros in Frankfurt today.
The company’s shares closed up 1.1% at 5.86 euros.