European car makers have posted some surprising results despite the COVID-19 outbreak. 

Peugeot maker PSA has recorded sales totalling $18.3 billion in its third quarter, down only 0.8 percent. The results are in keeping with upbeat reports from Daimler, Renault and BMW, boosted by rising demand from China. 

Anna-Marie Baisden, head of autos research at Fitch Solutions, says the good news for the industry depends on the regions in which the companies have their largest markets. For example, she notes that PSA "had particularly good growth from the Middle East and Africa region, which has been a key focus of their strategy."

PSA and Fiat Chrysler Automobiles (FCA) plan to merge by the end of the first quarter of 2021, which would create the world's fourth-largest car maker, worth approximately $38 billion. 

Baisden sees this as a reflection of where the industry is heading: further consolidation.

"We expect to see a lot more of it in the future. You can achieve much more in the way of economies of scale, platform-sharing, capacity-sharing. Even if we don't see more full-on mergers like this one, we'll certainly see more increased cooperation."

The merged group will be called Stellantis and expects annual sales of 7.9 million vehicles. Stellantis will be based in the Netherlands and will have listings in Paris, Milan and New York.

(Cover image credit: Eric Piermont/AFP)