How Renault, Fiat Chrysler could save through sharing

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If French automaker Renault green-lights a proposed merger with Fiat Chrysler Automobiles, the companies almost immediately could begin saving ...

REUTERS: If French automaker Renault green-lights a proposed merger with Fiat Chrysler Automobiles, the companies almost immediately could begin saving money by consolidating components and basic structures on many of their most popular vehicles, an industry analyst said on Tuesday.

A Renault-Fiat Chrysler combination"would mean a greater sharing of parts could really boost the profitability of Fiat Chrysler's smaller vehicles," said Sam Fiorani, vice president, AutoForecast Solutions. Fiorani said Fiat Chrysler could benefit from sharing the French automaker's expertise in electric vehicles and powertrains, where Renault and Nissan have jointly invested more than US$5 billion. These are areas in which Fiat Chrysler has little in the way of components or intellectual property.

"They will need Nissan’s agreement for it to be used by Fiat Chrysler,” Pelata told BFM radio on Tuesday. “Nobody’s talking about that right now, but it’s an important subject.”

 

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