as for Fiat, my understanding is, that there is no government involment. Origionally the Italian G'vnmt controlled Alfa Romero, which was perputually bankrupt, but unloaded it to FIAT sometime ago.

while there is some co-operation between these two companies, ie light commericals.PSA has strongly indicated that it wishes to remain alone, after the disasterious aquisation of Chrysler Europe [another basket case], which almost sent it down. Then at the behest of the French government the control of Citroen, which took a decade or so to turn around.

What with the current fiscal support of both French auto manufacturerres to survive this current down turn, one would question why either would want to take on the burden of a struggling auto manufacturer, the likes of GM or Chrysler ; which is desd in the water-and for years- why did Daimler bail out?]

So, PSA, while co-operating with the likes of , Ford Europe [ diesel engines] Mitsubishi [ Four wheel drives] Toyota, BMW and joint ventures in China & Latin America , PSA's indicated policy is no aquisitions./

FIAT [cars], has been struggling for decades and only recently got a few products that are salable.There could be some benifits for PSA in a co-operative manner.Primarly, it would appear, the company is sound, being run for generations, by a conserviate French commerical family.