The Peugeot family retains 46% of company voting rights, and stresses independence for the most part- this scuttled past deals attempted to join with FIAT. But an alliance could be established on a number of different levels- especially purchasing and some engineering. Marchionne was speaking at the unveiling of the new Alfa-Romeo Giulietta.
I myself am a big fan of Peugeot... really my favorite non-Italian brand. Above pictures are of the company's latest show-car Concept Five... very nice.