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.
Tag: Autonomous
UPDATE 2-First Sensor in advanced takeover talks with TE Connectivity
(Reuters) – Germany’s First Sensor AG said on Sunday it is in advanced talks with connector and sensor maker TE Connectivity Ltd regarding a takeover. The company, which makes electronic sensors used in the industrial, medical and automotive sectors, said it has received a legally non-binding expression of interest with an indicative offer price of… Continue reading UPDATE 2-First Sensor in advanced takeover talks with TE Connectivity
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.
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
SAE’s Autonomous Vehicle Engineering on New LiDAR Performance Metrics
In the May 2019 issue of SAE’s Autonomous Vehicle Engineering (AVE) magazine, AEye’s technical product manager, Indu Vijayan, argues that conventional metrics used for evaluating the unique capabilities of more advanced lidar systems are inadequate, failing to address real-world driving problems facing autonomous vehicles. In ‘New Performance Metrics for Lidar,’ Indu proposes that new measurements, such as object revisit rate and instantaneous (angular) resolution, are more advantageous for autonomous vehicle development.
Downloadable PDF
SAE's Autonomous Vehicle Engineering on New LiDAR Performance Metrics — AEye Team Profile: Indu VijayanDeconstructing Two Conventional LiDAR Metrics, Part 2Deconstructing Two Conventional LiDAR Metrics, Part 1AEye Expands Business Development and Customer Success Team to Support Growing Network of Global Partners and CustomersAEye Team Profile: Dr. Allan SteinhardtLeading Global Automotive Supplier Aisin Invests in AEye through Pegasus Tech VenturesAEye’s $40M Series B Includes Numerous Automotive Leaders Including Subaru, Hella, LG, and SKAEye’s iDAR Shatters Both Range and Scan Rate Performance Records for Automotive Grade LiDARGartner Names AEye Cool Vendor in AI for Computer VisionLG Electronics and AEye Announce Strategic Partnership to Address Sensing and Perception Needs of ADAS Market
Change of leadership at the car company: buckle up, please! Will Ola Källenius succeed in the radical reconstruction of Daimler?
Ola Källenius The new head of Daimler should make the group an efficient mobility service provider. With the transfer of Zetsche to Källenius, the Group is once again facing a challenge. Does the pattern manager have enough rigor, vision and willingness to change? Infographics: How Daimler stands in comparison to BMW and VW and what… Continue reading Change of leadership at the car company: buckle up, please! Will Ola Källenius succeed in the radical reconstruction of Daimler?
DHL: Regular drone use
The Deutsche Post subsidiary, DHL, has started a regular drone mission. The logistics company DHL will also start in the future dronesto expand its delivery capacity. Drone for DHL in China in use. Actually, the post had the technical considerations a cancellation granted, It was technically possible, but not necessarily economical. But DHL obviously sees… Continue reading DHL: Regular drone use
BMW Shareholders Concerned Over Tesla’s Advantage
Shareholders are asking BMW about electric models that would blow Tesla out of the water. Premium car manufacturers in general are experiencing tough times with difficulties to increase sales and raising R&D costs due new trends like electrified, autonomous and connected cars. According to automotive analysts, current business model of premium/luxury brands needs to be… Continue reading BMW Shareholders Concerned Over Tesla’s Advantage