Fiat and Chrysler boss Sergio Marchionne has predicted PSA Peugeot-Citroen will be the next car maker to enter into a merger with a rival.
"The next merger will probably be French," Marchionne told Automotive News. "They tried with Mitsubishi and they will try with someone else."
PSA Peugeot-Citroen ended talks over a proposed equity swap with Mitsubishi last month.
PSA Peugeot-Citroen currently has an engine partnership with BMW, and both parties said earlier this year they were exploring other areas where they can co-operate.
Daimler and Renault-Nissan last week announced a tie-up to share platforms, drivetrains and engines as part of a massive cost-saving push.
Marchionne's Fiat acquired 20 per cent of Chrysler in June.