Fiat Chrysler presents plan for merger with Renault

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Fiat Chrysler has delivered a non-binding letter to Renault proposing a '50/50 merger', with a group that will be listed in Paris, New York and Milan. fiatchrysler renault

Rumours circulated that Renault was interested in Fiat-Chrysler after its hopes for a full merger with Nissan or even French competitor PSA were dashed.

The source said, however, that a decision was not expected by the close of the day: “it will take days, or even weeks”. The brand portfolio of the two groups would be “broad and complementary… and would provide full market coverage, from luxury to mainstream”, it said.Renault’s current major partnership is with Japan’s Nissan, in which it holds 43%.

However, the tie-up with FCA could make Renault much more powerful, potentially further upsetting the balance in the Renault-Nissan-Mitsubishi alliance where Ghosn was pushing for much more say before his downfall. Fiat Chrysler said the merger would put the group in “a strong position in transforming technologies, including electrification and autonomous driving”.

 

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