FRANKFURT/DETROIT (Reuters) – Fiat Chrysler Automobiles NV and Renault SA promise huge savings from a mega-merger, but such combinations face tall odds because of the industry’s long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters. FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S.… Continue reading FCA, Renault face tall odds delivering on cost-cutting promises in merger
Tag: Mitsubishi
Nissan tells Renault ‘not opposed’ to Fiat Chrysler merger plan -Nikkei
TOKYO (Reuters) – Nissan on Wednesday told Renault it wasn’t opposed to its partner’s potential $35 billion merger with Fiat Chrysler, the Nikkei newspaper said, as the two met to hash out the future of their alliance amid a deal that could upend the auto industry. FILE PHOTO: The logos of car manufacturers Renault and… Continue reading Nissan tells Renault ‘not opposed’ to Fiat Chrysler merger plan -Nikkei
Blindsided by FCA-Renault talks, Nissan risks being left by the roadside
TOKYO/BEIJING (Reuters) – Nissan found out about Renault’s merger talks with Fiat Chrysler just days before they became public, four sources told Reuters, stoking fears at the Japanese carmaker that a deal could further weaken its position in a 20-year alliance with Renault. FILE PHOTO: A finished Nissan Altima comes off of the flex line… Continue reading Blindsided by FCA-Renault talks, Nissan risks being left by the roadside
FCA Group proposes €32.6bn merger with Renault
Fiat Chrysler Automobiles has proposed a €32.6 billion (£28.3bn) all-share merger with Renault to forge a new alliance that could save the Italian carmaker “in excess of €5 billion”. Following the announcement of the proposal yesterday (May 27), shares in Renault, which began Monday with a market value of almost €15 billion, surged 13.8% in early… Continue reading FCA Group proposes €32.6bn merger with Renault
Fiat Chrysler and Renault pursue $35 billion merger to combat car industry upheaval
MILAN/PARIS (Reuters) – Fiat Chrysler pitched a finely balanced merger of equals to Renault on Monday to tackle the costs of far-reaching technological and regulatory changes by creating the world’s third-biggest automaker. If it goes ahead, the $35 billion-plus tie-up would alter the landscape for rivals including General Motors and Peugeot maker PSA Group, which… Continue reading Fiat Chrysler and Renault pursue $35 billion merger to combat car industry upheaval
Fiat Chrysler proposes merger with Renault
Fiat Chrysler has made a “transformative” merger proposal for French carmaker Renault, the Italian firm said on Monday. The combined business would be 50% owned by Fiat shareholders and 50% by Renault stockholders. The carmaker said the merger would create a global automotive leader, with 8.7 million vehicle sales. Carmakers have faced pressure to consolidate… Continue reading Fiat Chrysler proposes merger with Renault
Factbox: Auto industry consolidation – mega-mergers and alliances
FRANKFURT (Reuters) – Italian-American carmaker Fiat Chrysler on Monday proposed a merger of equals with France’s Renault in a deal that could create the world’s third-biggest carmaker and trigger a fresh round of industry consolidation. FILE PHOTO: The logo of French car manufacturer Renault is seen at a dealership of the company in Illkirch-Graffenstaden near… Continue reading Factbox: Auto industry consolidation – mega-mergers and alliances
FCA in merger talks with Renault
Fiat Chrysler Automobiles has confirmed it is in talks about a transformative merger with its French rival Renault. The new company would be 50% owned by FCA and 50% by Renault. FCA stated the broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream. Under the proposal, both carmakers would merge… Continue reading FCA in merger talks 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 France’s Renault are in talks to form a partnership
A row of Fiat Chrysler Automobiles (FCA) 2017 Crysler Pacifica minivan vehicles are displayed for sale at a car dealership in Moline, Illinois, on Saturday, July 1, 2017.Daniel Acker | Bloomberg | Getty ImagesFiat Chrysler and Renault are in discussions to form a partnership, a source familiar with the talks told CNBC.
The Italian-American and French automakers are looking at a number of opportunities that would have the companies working together in the future, the source said.
It is unclear if a partnership between the two automakers would lead to Fiat Chrysler eventually joining the Nissan-Renault-Mitsubishi alliance.
Fiat Chrysler declined CNBC's request for comment. Renault could not be immediately reached for comment.
The Financial Times first reported the story.
Back in March, The Financial Times reported that Renault planned to take up merger talks with Nissan within the year, and then potentially acquire Fiat Chrysler.
Fiat Chrysler's chief executive, Mike Manley, previously told the FT: “If there's a partnership, merger, relationship that makes us stronger, then I'm absolutely open to looking at it.”
If Fiat Chrysler is added to the Renault-Nissan-Mitsubishi Alliance, which dates back to 1999, it would become the largest global carmaker, with 15.6 million combined sales a year. The current leader, Volkswagen, sold 10.8 million last year.