FRANKFURT/DETROIT - Fiat Chrysler Automobiles NV and Renault SA promise huge savings from a mega-merger, but such combinations face tall odds because of the industry’s long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters.
FCA and Renault have raised the stakes for themselves by ruling out plant closures. That increases the pressure to achieve more than $5 billion in promised annual savings from pooling procurement and research investments. “With the emergence of connected, autonomous, electric and shared vehicles, carmakers face immediate investments, so new opportunities for sharing costs have emerged,” said Elmar Kades, managing director at Alix Partners.
He is a former director of Volvo Cars Corp, a non-executive director of Geely Automobile Holdings, a former head of manufacturing at BMW and the former chief executive of Opel. Fiat Chrysler said it believes it will meet European fleet average emission thresholds, including by spending up to 1.8 billion euros to acquire regulatory credits from rivals.
The merger is about survival in a post-SUV, post $5 per gallon America. The cost-cutting promises are to placate Wall Street weirdos who can’t see past next quarter.
The quality of the merger depends on the operation of the quality of the borrowing and the currency of the leadership statements of the acquisition systems for the labor supply and the quality of the joining of the authorized forces
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Philippines Philippines Latest News, Philippines Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Italian government might ask for symmetry with Paris in FCA-Renault merger - League lawmakerItalian government will defend national interest in the FCA- Renault merger and ... continuous consolidation of the automotive industry is a sign of weakness and potential disaster. creation of too big to fail monsters will end up on the liability side of respective governments' balance sheets. this should be avoided at all costs.
Source: Reuters - 🏆 2. / 97 Read more »
Renault to decide next week whether to proceed with FCA merger talks: sourcesRenault board members will meet informally for work sessions within days with a ... A merger between Renault and Fiat-Chrysler is completely bonkers madness. Ask AMC how their tie-up with Renault went. What, you can't ask AMC because they're dead? This would be DOA if we actually had a functioning government and a real trade representative.
Source: Reuters - 🏆 2. / 97 Read more »
Nissan CEO sees no big downside to FCA-Renault mergerNissan sees no major downside to partnering with a combined Renault and Fiat Chr... Just even crappier cars....your Dodge will fall apart in 2 years vs 4... 'Come on!'...Nissan CEO will say anything to keep his share holders from panicking...until he collects his bonus and moves on... ( the rest of us know quality at nissan has taken a dump ) Rarely do I stick my neck out in business strategy. This carries hallmarks of success.CSFs will revolve around getting Unions on board & significant FTE reductions plus quality in terms of reliability & endurance in USA manufacturing sites. WednesdayWisdom. VWGroup fiat
Source: Reuters - 🏆 2. / 97 Read more »
Fiat Chrysler submits proposal for a merger with RenaultThe combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. it is a shame that Europe‘s policy did not recognize FIAT’s low CO2 fleet emissions. Having the possibility monetizing that, no market concentration would be necessary Would Nissan be included in the merger as well?
Source: CNBC - 🏆 12. / 72 Read more »
Italian government might ask for symmetry with Paris in FCA-Renault merger - League lawmakerItalian government will defend national interest in the FCA- Renault merger and ... continuous consolidation of the automotive industry is a sign of weakness and potential disaster. creation of too big to fail monsters will end up on the liability side of respective governments' balance sheets. this should be avoided at all costs.
Source: Reuters - 🏆 2. / 97 Read more »