Fiat Chrysler Officially Proposes 50-50 Merger With Renault Group

Fiat Chrysler Automobiles (FCA) has confirmed their proposal to Renault for a 50/50 merger, as reported earlier.

FCA’s proposal follows earlier discussions between the two car makers in order to identify products and geographies where they could partner, particularly in the development of new technologies.

Renault has responded with a statement, saying that its board has reviewed FCA’s proposal and has decided to further study “with interest the opportunity of such a business combination”.

Also Read: Renault And Fiat Chrysler Automobiles May Announce Merger Talks On Monday

If the deal between the two car makers goes through, it will bring brands like FCA’s Jeep, Chrysler, Ram, Fiat and Alfa Romeo together with Renault, Nissan, Dacia and Lada.

“The combined business would sell approximately 8.7 million vehicles annually, would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis”, FCA said in its announcement.

The proposed merger between the two car makers would be structured as a 50/50 ownership via a Dutch holding company, according to FCA, following a payment of $2.8 billion special dividend to FCA shareholders.

“FCA’s evolving capability in autonomous driving, which includes partnerships with Waymo, BMW and Aptiv, is complemented by Groupe Renault’s decade of experience in EV technology where it is the highest selling EV OEM in Europe.” FCA added.

If succesful, the merger would create the world’s largest automotive alliance, with more than 15 million vehicles sold annually. FCA’s US operations will not be affected according to some reports, with the car maker noting that no plant closures would result from the deal.

Fiat Chrysler and Renault have currently a combined market value of $36.5 billion (32.6 billion euros).

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  • KenjiK

    Nissan GTR Hellcat Vs Dodge Challenger Nismo.

    • Liam Paul

      no nissan wont play, just the ceos of fca and renault should stay far away from japan or they might find themselves on fake charges like ghosn

      • ThatGuy

        Liam i agree, and as much as Nissan and Renault share alot, there is no chance they will be giving over GTR info or sharing in a million years

  • Craig

    Sounds very exciting. Just don’t kill off the Chrysler brand and I’ll be happy.

    • Jason Panamera

      Chrysler like Lancia is going down. Brands with potential are not being cared properly.

      • Craig

        It would be foolish of FCA to kill off the Chrysler brand. When both Acura and Lexus started off – they only had two models. That didn’t seem to stop them.

        • ThatGuy

          Craig i agree, they will never let a brand die and i assume will do the platform sharing and engine development to boost the brand to make it competitive

          • Craig

            I sure hope so!

    • ThatGuy

      I don’t think that Renault will kill off Chrysler, i assume they will discuss a way forward like Dacia and Ladia, Make offerings that are country specific for where Chrysler is sold. And if they do share the CMF platform it can allow Chrysler to expand and drive costs down, maybe even grow and expand. Here is hoping.

  • yonceous

    this would be amazing tbh! shake up the industry

  • Liam Paul

    if I was the CEO of renault or FCA, I would reconsider any travel plans to japan …

  • Matteo Tommasi

    This move will put Nissan in an angle.
    They will be facing with a much bigger partner, and they will have to decide if they want to die or take a minor part in the alliance, with little influence.

  • ME

    What does Renault bring to the table that is so attractive? I think Nissan should be under its own (Japanese) leadership.

    • Matt

      Cost-savings through platform and powertrain sharing…

    • Romain AA

      a much stronger European position, EV technologies, powertrains, access to India and Russia, a much higher purchasing power. And then, depending on the outcome of the ongoing discussions, Nissan/Mitsubishi could add up to it all too.

    • ch2856

      Europe, simple as that. Fiat is dead in Europe, aside from the Italian market no one buy Fiat, especially since they have almost nothing to sell. Not to mention other markets where Renault is pretty strong.

  • Mr. EP9

    Again, I’m curious as to where this leaves Nissan.

    • ChicagoBlah

      new wranglers will get cvts?

      • ThatGuy

        ChicagoBlah, nah Nissan does the CVT thing (atrocious CVT thing), if its Renault it will get the EDC system.

    • Leconte Dave

      Nissan is trying to leave

  • MarkoS

    This would obviously give Ram access to the upcoming Frontier Platform for a competitive Mid-Sizer. A Shared Ram 1500 chassis could also work well for the next Titian. I would also say this looks good for a new Z Car. Interesting times.

  • Paul

    This seems like an unholy matrimony where nobody will win.

  • J. P.

    Isn’t this ironic as hell? Renault used to own Jeep and AMC before they sold it to Chrysler and now they’re talking about merging

  • Paulbe

    I foresee an organisational nightmare brewing.

  • kachuks

    50-50 merger? Let’s just call this a strategic alliance then. It’s a smart move actually. Other partnerships are probably wondering why they didn’t go this route in the first place.

  • Wandering_Spirit

    A great idea. Perhaps the best for both of them. Renault can also inject some original idea into the design of the Fiat models. Admittedly, Renaults are not all good too look at but many are and Fiat models are not only old but definitely ugly. The sadder version of VW in many ways.

    • ThatGuy

      W_S, fact. Also it will hopefully give some competition to the VAG group offering, adding to the competition in all these intense sectors.

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