Investing.com - The car industry was full of chatter on Tuesday as French carmaker Peugeot’s president pointed toward a potential merger with Fiat Chrysler.
"With them, as with others, the planets could be aligned," Robert Peugeot said after being asked about targets for acquisitions or mergers.
The company's CEO Carlos Tavares has said is open to merger deals. A merger with Fiat Chrysler would help the European company expand, as Fiat has a larger presence in North America.
Peugeot SA (PA:PEUP) was up 2.5% in Paris trading, while Fiat Chrysler Automobiles NV (NYSE:FCAU) gained 4.8% on the New York Stock Exchange.
Meanwhile Ford Motor Company (NYSE:F) gained 4.8% after news that it is increasing production of its large SUVs, as low-oil prices in the U.S. have helped raise demand for the popular model. The sector overall was also higher, with the S&P 500 Consumer Discretionary index up 1.2%.