Tag: Renault

Fiat Chrysler proposes 50-50 merger with Renault

Fiat Chrysler Automobiles has proposed merging its business with Renault that, if accepted, would create the third largest global automaker with 8.7 million in annual vehicle sales. FCA delivered Monday a non-binding letter to Renault’s board that proposes combining the business as a 50-50 merger. FCA’s proposal illustrates the growing desire among automakers to consolidate,… Continue reading Fiat Chrysler proposes 50-50 merger with Renault

Shares leap higher after Fiat Chrysler and Renault propose merger

VIDEO5:1405:14Fiat Chrysler submits proposal for merger with RenaultSquawk Box EuropeFiat Chrysler and Renault, two automakers looking to curb costs producing vehicles and pool resources for developing the next generation of automobiles, are planning a merger to create the world's third largest automaker.
According to a statement from Fiat Chrysler Automobiles, the combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. A board of governors would hold a majority of independent directors.
Shares in Fiat Chrysler and Renault jumped 13% and 11.5% respectively.
The merger still requires approval by the boards of both automakers.
The joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world's third largest car manufacturer.
Fiat Chrylser said the combined entity would generate savings of 5 billion euros annually ($5.6 billion) and be “carried out as a merger transaction under a Dutch parent company.”
The press release from Fiat Chrysler added that there would be no plant closures as a reults of the tie-up and the union should provide an opportunity to lead in the development of electric and autonomous vehicles.
During Fiat Chrysler's most recent earnings call, CEO Mike Manley was asked about the possibility of merging with another automaker and told analysts. “We are going into an environment where there are going to be opportunities.”
Fiat Chrysler's partnership with Renault is completely separate from the Nissan-Renault-Mitsubishi alliance.
For Renault, the partnership with FCA renews speculation the French automaker's alliance with Japan-based Nissan may not last.
The two companies hold stakes in each other, but that alliance has been strained since the arrest of Nissan-Renault CEO Carlos Ghosn late last year. Ghosn has been charged in Japan with committing financial crimes while serving as CEO of Nissan, charges Ghosn and his lawyers vehemently deny.
Last year, Fiat Chrysler sold 4.85 million vehicles worldwide, with the vast majority being sold in North America where Jeep and RAM Trucks are two of the most popular brands. Meanwhile Renault sold 3.81 million vehicles in 2018, with most of its business happening in Europe.

Fiat Chrysler and Renault are in advanced talks to merge the automakers

FILE PHOTO: The logo of FIAT carmaker is seen on a vehicle in Cairo, Egypt, May 19, 2019. Picture taken May 19, 2019. REUTERS/Mohamed Abd El Ghany/File PhotoMohamed Abd El Ghany | ReutersFiat Chrysler and Renault are in advanced talks to merge the two automakers.
Sources say the talks, which have been happening over the last several weeks, have picked up speed in recent days and could lead to an announcement regarding a merger or partnership as soon as tomorrow.
The CEOs of both automakers have made it clear they are open to partnerships with other automakers that would give them the economies of scale to further cut costs both in terms of manufacturing as well as in developing vehicles. The move could be especially beneficial in Europe where auto sales overall are under pressure.
During Fiat Chrysler's most recent earnings call, CEO Mike Manley was asked about the possibility of merging with another automaker. “We have made it clear in the past that we want to be active and proactive to develop our business and improve the value for our shareholders,” Manley told analysts. “We are going into an environment where there are going to be opportunities.”
Meanwhile, under former CEO Carlos Ghosn, Renault was increasingly interested in a full merger with Nissan, its partner in an alliance that has delivered mixed results. When the two automakers first formed their alliance in the late 1990s, the combination helped Nissan cut losses and ultimately become a highly profitable automaker. These days there's growing tension between Nissan and Renault since the arrest and detention of Ghosn late last year. Japanese authorities have charged Ghosn with a number of crimes relating to his tenure as CEO of the Nissan-Renault alliance.
Whether Fiat Chrysler ultimately joins the Nissan-Renault alliance is unclear.
A partnership between Fiat Chrysler and Renault would also help the automakers pool resources for the development of electric and autonomous vehicles. Renault's EV program is considered to be more advanced than Fiat Chrysler's, but neither automaker is considered a leader in electric vehicles.
A spokesperson for Fiat Chrysler would not comment when reached by CNBC. Renault could not immediately be reached for comment.

Fiat Chrysler and Renault expected to announce tie-up talks

Fiat Chrysler Renault board reportedly plans to go public with partnership after a meeting on Monday morning Any tie-up between the two companies would be likely to face political and workforce hurdles, particularly in Italy Photograph: Marco Bertorello/AFP/Getty Images Fiat Chrysler and Renault are expected to announce on Monday that they are in talks on… Continue reading Fiat Chrysler and Renault expected to announce tie-up talks

Carmakers FCA and Renault to go public on tie-up talks

MILAN/PARIS (Reuters) – Fiat Chrysler and Renault are set to confirm tie-up talks on Monday, with the board of the French carmaker called to an early morning meeting to discuss the situation. FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo, Egypt, May 19, 2019. Picture taken May 19,… Continue reading Carmakers FCA and Renault to go public on tie-up talks

FCA and Renault to go public on potential tie-up

MILAN/PARIS (Reuters) – Fiat Chrysler and Renault are set to confirm talks on a potential tie-up on Monday, with the board of the French carmaker called to an early morning meeting to discuss the situation. FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo, Egypt, May 19, 2019. Picture… Continue reading FCA and Renault to go public on potential tie-up

Details on FCA/Renault talks set to emerge on Monday

FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo, Egypt, May 19, 2019. Picture taken May 19, 2019. REUTERS/Mohamed Abd El Ghany/File Photo MILAN/PARIS (Reuters) – Fiat Chrysler is likely to make an announcement about its talks on a potential tie-up with rival Renault on Monday, two sources told… Continue reading Details on FCA/Renault talks set to emerge on Monday