During the six months PSA made a 3.7pc margin on vehicles sales, below the 4.5pc it is targeting. Mr Tavares said he was confident the merger with FCA - which will see the combined companies called Stallantis if it goes ahead - and talked up the prospects of sales rising as the pandemic eases. He added: "We are determined to achieve solid rebound in the second half of the year, while finalising the birth of Stellantis before the end of" the first quarter of 2021, he said in the earnings statement. The creation of Stellantis would see a new giant in the automotive world, making it the world's fourth largest car business by sales and valued at £40bn. This would make it twice as large as Ford. The European Commission is investigating the merger over competition fears.