The boards of automakers Fiat Chrysler Automobiles N.V. and Peugeot S.A said on Wednesday it would not pay an ordinary dividend for 2019 this year due to a collapse in consumer demand resulting from the COVID-19 pandemic.
The health crisis has thrown the global auto industry into the worst tailspin since the 2008-09 financial crisis. Consumer demand for vehicles has plummeted as governments across Europe and the United States have enforced lockdowns.
Fiat has already finalized a plan in overnight talks with Renault, and the deal would be discussed at a meeting of Renault’s board on Monday.
The two companies also confirmed that preparations for their merger are advancing with respect to antitrust and other regulatory filings.