As pointed out by an Italian economic newspaper, the top authorities of both automotive brands have resumed contacts on the merger.
Undoubtedly, the merger between the Italian and French brands is being the summer soap opera in the automotive world. After Fiat’s tough statement announcing that it was withdrawing its merger offer with Renault for different reasons of a political nature, it seemed that any kind of agreement was a mere chimera. However, something is changing in the last days.
As reported an Italian economic medium, Il Sole 24 Ore, in recent days the directors of both groups have held meetings in Paris with the aim of retaking contacts to achieve the merger.
Mike Manley, CEO of Fiat Chrysler; and the president of Renault, Jean-Domique Senard, met in Paris, according to the media mentioned, to talk about the “obstacles” that torpedoed the merger a few weeks ago and seek solutions that channel the initial agreement 50% fusion.
Mainly, the two leaders of both brands analyzed the role of the French Government in the merger, the main obstacle for Fiat in the negotiations. They also debated about the lace of Nissan in the new car giant that had been planned and that would reach the 15 million vehicles manufactured.
The demands of the French government that prevented the merger
The agreement, according to Fiat Chrysler Automobiles (FCA), was not possible due to the impositions of the French government. As the public entity owned 15% of the company, it demanded a greater weight for Renault in the future joint venture and special guarantees for the factories and staff in France.
This prompted FCA to assure that “it has become clear that there are currently no political conditions in France for this union to succeed”.