Fiat, PSA Deny Merger Report

Fiat SpA and PSA Peugeot Citroen both deny a Financial Times report citing unnamed sources who say the companies may revive preliminary partnership talks held over the past year.

PSA "categorically denies" that any such past discussions took place. Fiat tells the FT the companies are not currently in talks.

The London newspaper's report comes a week after Germany's Manager Magazin, also citing unidentified sources, claimed Fiat and Volkswagen were discussing a merger.

Fiat and PSA are preoccupied with their own short-term projects: PSA completing its financial revival and Fiat finalizing its acquisition of Chrysler Group. But analysts say both face longer-term pressure to gain scale so they can compete globally.

Fiat-Chrysler CEO Sergio Marchionne has fueled merger speculation by acknowledging the need for size. The FT notes that he recently indicated there are unnamed carmakers who are "looking for marriage partners." He also declared, "To delude ourselves that we can do everything by ourselves is nonsense."