Fiat Chrysler Automobiles (FCA) is proposing a massive merger with Renault and for its part Renault says
it’s going to study the idea.
News of FCA’s proposal came via a press release
on its media site which you can read in part below:
Fiat Chrysler Automobiles N.V. has delivered a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger.
The FCA proposal follows initial operational discussions between the two companies to identify products and geographies where they could collaborate, particularly as they develop and commercialize new technologies. These discussions made clear that broader collaboration through a combination would substantially improve capital efficiency and the speed of product development. The case for combination is also strengthened by the need to take decisions to capture at scale the opportunities created by the transformation of the auto industry in areas like connectivity, electrification and autonomous driving.
The proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability and technology, benefitting the companies’ respective shareholders and stakeholders. The combined business would sell approximately 8.7 million vehicles annually, would be a leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis.
While there is no certainty that this proposal will result in a merger, the Board of FCA has strongly supported and approved the proposal, which will now be reviewed by the Groupe Renault Board of Directors. The definitive agreements for the proposed combination are subject to negotiation and to final review and approval by the FCA and Groupe Renault Boards. Completion of the proposed combination would also be subject to customary closing conditions, including approval by each company’s shareholders, as applicable, and the satisfaction of antitrust and other regulatory requirements. - FCA Press Release
If approved by the necessary authorities, this merger would immediately make FCA/Renault the world’s third largest automaker, behind the Volkswagen Group and Toyota. The deal would push General Motors down to fourth place.
It would also put the following brands under one umbrella: Fiat, Chrysler, Dodge, Jeep, Ram, Renault, Nissan, and Mitsubishi.