Fiat Chrysler, Renault merger talks collapse

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Fiat, Renault merger talks collapse GlobeBusiness

The merger between Fiat Chrysler Automobiles and France’s Renault, a deal that would have created the third-largest car maker, has collapsed.

In a press release, FCA said “it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”FCA’s decision to withdraw came immediately after the Renault board pushed back a decision to endorse the deal for the second time this week.

Mr. Le Maire said “An agreement had been reached on three of the four conditions. What remained to be obtained was the explicit support of Nissan.” He gave no other details. The initial response from Renault chairman Jean-Dominique Senard was positive. Renault has no presence in North America, a hole that could be filled by FCA. At the same time, Renault was far stronger than FCA in electric cars. FCA and Renault together would make 8.7-million vehicles a year, put it third, behind Volkswagen and Toyota and ahead of General Motors. If Renault’s alliance with Nissan and Mitsubishi were added to the mix, FCA-Renault would be the world’s top automaker.

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