"We will ask FCA for continuity on its industrial plan and on investments and production in Italy", Stefano Patuanelli said on state television.

"The tie-up of two big groups like FCA and PSA can have scale economies on costs but the savings must not affect workers in the country", he added.

Fiat Chrysler and PSA said earlier today they plan to join forces through a 50-50 share swap to create the world's fourth-largest automaker, triggering a new wave of consolidation in the car industry.

(Reporting by Francesca Piscioneri, writing by Sabina Suzzi, editing by Stephen Jewkes)