Fiat Chrysler Automobiles has announced that it has proposed a “transformative merger” with Renault, which would create the third largest automaker.

According to the announcement, the merger would sell approximately 8.7 million vehicles a year and generate $5.6 billion in savings, due to the use of common global vehicle platforms, architectures, powertrains and technologies. In addition, The FCA and Group Renault combination together with its Nissan and Mitsubishi partners would be the largest global OEM alliance, selling more than 15 million vehicles annually. Renault says after receiving FCA’s “friendly proposal”, that its Board of Directors decided to “study with interest” the opportunity.

FCA says that the merger will bring together “complementary strengths,” with a brand portfolio that would provide full market coverage with a presence in all key segments. FCA would also leverage Group Renault’s strong presence across Europe, Russia, Africa and Middle East, while Group Renault would benefit from FCA’s presence in North America and Latin America.

If the merger does happen, it would be carried out as a merger transaction under a Dutch parent company. The 50-50 ownership by FCA and Group Renault shareholders. The new Board would also be composed of 11 members, with the majority being independent and with equal representation of four members each for both FCA and Group Renault, and one from Nissan.