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Fiat Chrysler and Renault pursue $35 billion merger to tackle car sector challenges

  • 📰 Reuters
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To confront technological and regulatory challenges in the auto sector, Fiat Chrysler pitches a $35 billion merger to Renault

MILAN/PARIS - Fiat Chrysler pitched a finely balanced merger of equals to Renault on Monday to confront the costs of far-reaching technological and regulatory changes by creating the world’s third-biggest automaker.

“The market will be careful with these synergy numbers as much has been promised before and there isn’t a single merger of equals that has ever succeeded in autos,” Evercore ISI analyst Arndt Ellinghorst said. He did not comment on the French government’s 15% stake in Renault, but an influential lawmaker from the ruling League party said Rome may seek a stake in the combined group to balance France’s holding.

Renault, by contrast, was an early mover in electric cars, has relatively fuel-efficient engine technologies and a strong presence in emerging markets, but no U.S. business. FILE PHOTO: A Fiat Chrysler Automobiles sign at its U.S. headquarters in Auburn Hills, Michigan, U.S., May 25, 2018. REUTERS/Rebecca Cook/File Photo

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

Y'know, I was just looking at cars last night. Passively browsing. I just wasn't inspired by anything anyone was offering.

Nguyễn Tiến Nghiệp chỉ biết ra lệnh

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

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Fiat Chrysler Unveils Renault Merger ProposalFiat Chrysler Automobiles said it was proposing a merger with Renault, a move that is likely to shake up the global automotive industry. Let’s bring back the ford pinto, if anyone can do it it’s the Italians and the French Why not? So many auto companies are on the brink of bankruptcy. They might as well merge to stay alive.
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