Fiat Chrysler seeks a merger with Renault

THE RISE of the SUV over the past decade demonstrates that carmakers have done an excellent job of persuading customers that bigger is better. Renault and Fiat Chrysler Automobiles are hoping to convince investors that the same is true of carmakers themselves. On May 27th the Italian-American FCA confirmed rumours that it was seeking a merger with its French counterpart, itself part of a close alliance with Japan’s Nissan and Mitsubishi.

The combination of the two firms looks good on paper. The scale that Marchionne talked about and Mr Ghosn built through his Franco-Japanese alliance was a sensible reaction to the challenges of the industry. It helps firms ride out economic downturns and spread investments in electric vehicles , self-driving cars and mobility services across more vehicles. FCA estimates that joint development of engines, EVs and platforms on which all cars are built will save €5bn a year.

Can the tie-up defy the patchy history of automotive megadeals? The list of failures is long: Daimler and Chrysler, BMW and Rover, GM and Fiat, anything to do with Ford. Both FCA and Renault-Nissan-Mitsubishi have succeeded in part thanks to those exceptional former bosses, and partly because they avoided full-blown integration. FCA has flourished because Fiat and Chrysler have remained largely apart.

Two laggards in electrifying their lineup. No surprise!

athiest social work112rakkat worshiper said dont give signal2brain2make unseen robot toys useless y athiest said zb lack yr prophecy war win only cycle bikes car aeroplane y profit pray2free all sometime profit think y film world against ppl how2make smoke mezile2make all muslim

Honestly, Sergio Marchionne suddenly died in summer 2o18 while the harvest of his visionary hard work had been seen. He rescued FIAT and led it to new life. I can’t see that he is a fallen Giant.

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