Saturday, September 19, 2020
News FCA and Renault: a planned merger

FCA and Renault: a planned merger

Fiat Chrysler Automobiles is in talks with Renault for a possible merger between the two groups.

The automobile industry could see the union of two giants if the proposal launched by the FCA group is accepted by the House of Representatives of the Renault group. A rumour has emerged over the weekend about the possibility of a merger between the two entities and since this morning, at the end of May, this potential agreement is very real, FCA has filed a letter of non-submission to shareholders of the Renault-Nissan-Mitsubishi Alliance.

This is not the first time we hear about the FCA Group’s search for a partner, the late Group CEO Sergio Marchionne, who made it one of his priorities towards the end of his term. It is important to mention that at the time of writing, this letter sent to the Renault group is only a proposal for an alliance, which does not guarantee any approval by the Renault-Nissan-Mitsubishi Alliance.

This agreement-in-principle between two major automotive groups, however, would be beneficial to many points of view for both parties, FCA which is well established in North America and South America, in addition to having agreements for the development of technologies surrounding autonomous driving with Waymo, BMW and Aptiv. For its part, the Renault group is a leader in electrical technology, the three main brands that are all involved in this field, and have a notorious presence in Europe, Russia, the Middle East and Africa.

We can see a certain complementarity between the two parties, FCA which also owns prestigious brands such as Alfa Romeo and Maserati, not to mention the Ram Division for commercial vehicles and Jeep for the utility portion. Renault, on the other hand, owns the popular brands Dacia and Lada, in addition to being associated with Nissan and Mitsubishi.

This union, if approved, would give the group the world’s third ranking in the entire automotive industry, which would enable it to achieve annual sales figures in excess of 15 million units.

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