Proposed FCA, Renault merger

GRtak

Forum Addict
Joined
Sep 6, 2008
Messages
26,323
Location
Michigan USA
Fiat Chrysler seeks 50-50 merger with Renault, whose board will study deal 'with interest'

https://www.freep.com/story/money/cars/chrysler/2019/05/27/fca-renault-merger-announced/1246855001/

Fiat Chrysler Automobiles outlined a detailed plan Monday to merge with French automaker Renault, which responded "with interest."

The news caps a whirlwind weekend of reports about the extent of talks between the automakers and leaves open the possibility of a wider alliance with Nissan that would reshape the global auto industry.

An FCA news release said the company had submitted a "nonbinding" proposal to Renault's board for a "transformative merger," which would be half owned by FCA and half owned by Renault. It also said no plant closures would result from the deal, asserting that benefits would come from savings on common vehicle platforms, powertrains and technologies.

A source told the Free Press on Sunday that the merger would not affect U.S. operations, including a $4.5 billion FCA expansion just approved for Detroit.

FCA's statement early Monday said: "The proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability and technology, benefiting the companies' respective shareholders and stakeholders. The combined business would sell approximately 8.7 million vehicles annually, would be a world leader in (electric vehicle) technologies, premium brands, SUVs, pickups and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis."
 
If this goes through, one company could potentially house the worst aspects of each country’s automakers, ie Italian electrics, American handling, French motors.

Now I’ve made myself ill.
 
This is a bad idea in my opinion. Chrysler and Jeep make more than everybody else in this and they won't have a say in anything.

From 4:45

 
The Renault Nissan alliance is shaky at the moment and that is also another concern.
 
3555554
 
Nissan would be glad to rid themselves or Renault, they've been trying to be more autonomous for years
 
The Renault Nissan alliance is shaky at the moment and that is also another concern.


Nissan sees no major downside to FCA-Renault merger
https://europe.autonews.com/automakers/nissan-sees-no-major-downside-fca-renault-merger

This is also a way for Renault to dilute Nissan equity.

Possibly a smart move by FCA. They need more electrification tech and FCA/Nissan/Mitsubushi shares are down a bit, due Nissan hit job on Ghosn combined with rest of the management isn't as good.

Manley and Elkann are doing what Sergio wanted to do.

Remember in 2015 Sergio Marchionne's “Confessions of a Capital Junkie” presentation. A call for industry consolidation.
https://eu.detroitnews.com/story/business/autos/chrysler/2015/05/26/marchionne-investors/27953865/

“Confessions of a Capital Junkie” (.pdf)
https://www.autonews.com/Assets/pdf/presentations/SM_Fire_investor_presentation.pdf
 
If this goes through, one company could potentially house the worst aspects of each country’s automakers, ie Italian electrics, American handling, French motors.

Now I’ve made myself ill.

I think it's a great idea myself. Essentially all of the world's shittiest cars made, essentially, by two companies in PSA/Opel/Vauxhall and Renault/Fiat/Chrysler
 
It is. Depending on which news outlet you believe because communist france (which is a 15% stakeholder in Renault) demanded guarantees for workers and plants; or because Nissan refused to play ball and threatened to cut off their alliance with Renault if the merger goes through.
 
i'm glad!
they would've ended up with single firm financing 3 F1 teams...that wouldn't have continued!
 
Renault was being very demanding for a company that was going to be the smaller part of the deal.
 
I was kind of hoping that Renault would shift to FCA and let Nissan go their own way.
 
Is this a plan to put together the two brands with the oldest platforms still sold as new?
 
Top