The auto industry is paying a high price for the coronavirus outbreak.
And cost cutting is playing a major role in its survival.
In a move to conserve their cash, Peugeot maker PSA and Fiat Chrysler are to restructure their planned merger.
The two companies are set to combine into Stellantis, and create the world's fourth-largest carmaker.
They said in a joint statement late on Monday (Sep 14) that FCA would cut to 3.4 billion dollars the cash portion of a 6.5 billion dollar special dividend its shareholders will receive under the terms of the deal.
France's PSA, which owns brands including Citroen and Opel, will in turn postpone the planned spinoff of its 46% stake in parts maker Faurecia until after the merger.
It will also extend it to all shareholders of the new group.
The ownership of Stellantis would still be split 50/50 between current PSA and FCA shareholders.
A source said on Monday that the changes are to reinforce the balance sheet structure of both companies.
And ensure the merger plan is concluded as soon as possible.
The two carmakers expect to complete the tie-up process by the end of the first quarter of next year.