Fiat Chrysler seeks 50-50 merger with Renault, whose board will study deal 'with interest'
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."