Renault And Fiat Chrysler Automobiles May Announce Merger Talks On Monday

Fiat Chrysler Automobiles and Renault are preparing to announce something significant on Monday.

A report over the weekend surfaced indicating that FCA and Renault have been in talks for a tie-up of their operations “that could include joining large portions of their businesses.”

Two unnamed sources with alleged knowledge of the discussions between the car manufacturer’s told Reuters on Saturday that the situation is still “fluid” but report that some kind of tie-up could address many of the respective weaknesses of the companies.

It is reported that the plan currently being discussed would involve some transfer of equity. It is believed that the companies are considering a merger of equals but are also investigating other tie-up options. Renault chairman Jean-Dominique Senard reportedly presented plans for an FCA-Renault merger to French finance minister Bruno Le Maire on Friday.

Also Read: Shares Surge As Peugeot Boss Says FCA Merger Is Possible

If FCA and Renault are to join forces, it would be a huge move as FCA is worth $20 billion while Renault is worth $17 billion, the Detroit Free Press notes.

FCA has been actively pursuing a potential merger for years now and under the leadership of the late Sergio Marchionne, was famously pushed back by General Motors over a possible tie-up. Current FCA chief executive Mike Manley recently said that the Italian-American car manufacturer can stand on its own but did reveal that it is open to deals with other car manufacturers.

In March, reports surfaced indicating that Renault was planning to launch a bid for Fiat Chrysler Automobiles in a move which had been previously discussed under the past guidance of former Renault-Nissan Alliance chairman Carlos Ghosn.

  • Mr. EP9

    Where will Nissan factor into the equation? Will they leave or kicked out? Will Renault outright just buy them? Will Nissan finally be forced to merge with Renault despite their objections to it? Interesting times ahead.

    • Joe

      I’ve read in the past that everyone at Nissan that wasn’t Carlos Ghosn was against any closer ties with Renault than those that exist now, and perhaps even that they are too close now. I expect Nissan will balk at this move and may be slowing down the negotiation, but are currently too entangled to separate themselves at any kind of pace.
      The UK newspaper front pages for Monday have been released by the BBC, and the Financial Times reports Renault is willing to dump a potential merger with Nissan (or “halt Nissan ambitions” as they put it) to make a Renault-FCA alliance/merger work. Nissan has shown clearly that it cannot survive without being allied to another company, so this could get interesting indeed.

      • designer_dick

        I wouldn’t be at all surprised if Renault decides to wash its hands of its uncooperative Japanese ‘partner’ once its merger with FCA is complete.

        • ThatGuy

          Fact desinger_d. They have shared technology and with Renault’s reliability much better, being the best french offering, i struggle to see them carrying a crying Partner. Nissan i assume feel they can run it alone as Mazda and Subaru do. However if you look at their offering there is not much that will sway people, the Qashqai(Rogue Sport) and X-Trail(Rogue) are basically the only offering that certain groups like, the rest is bland and lacks so much kit compared to all competitors it is a serious hinder to then.

          Plus think of it this way, back in the day NIssan was loved because they had a decent offering, these days many buyers dont know the heritage and offering(being the Majority). So buyers move on and NIssan can become a once was. But this is all how i see it.

          • MarketAndChurch

            I could see that. But for now, for me personally, I feel as if most of the innovation that FCA is seeking from this partnership (hybrid/electric and autonomous) is coming mostly from Nissan as they seem to be the one that is farther along those arenas. Maybe from Nissan’s vantage, they should be getting more of the profits/control if Renault and FCA future success rely entirely on their innovations, based on their research and development, again, based on their investments and decisions and planning.

          • MarketAndChurch

            Also I agree. Nissan has kinda lost its heritage, at least in the public consciousness, but I think the lack of identity is more of a crisis with Infiniti, and a few of the FCA brands.

          • ThatGuy

            I agree, their identity is not a full blown crisis like Infiniti. The heritage loss worries me as i feel they have lost their soul, granted they were not the best but were one of the best. The FCA brand in total excluding Alfa have totally lost their identity i my honest opinion. But what concerns me more is they started making generic looking cars externally and the cheapest looking inside. Even chinese car makers have passed Fiat etc. They need Renault more, and would benefit from their good pricing and marketability. Not VAG group level win but at least they can move out of obscurity, like hopely Mitsubishi will.Besides the Outlander(which is not that great) They have nothing in the way of an offering that makes you consider one of their vehicles, and no Lancer means another loss.

  • JRP

    Then the brands available would be:
    Abarth
    Alfa Romeo
    Alpine
    Chrysler
    Datsun
    Dodge
    Ferrari
    Fiat
    Infiniti
    Jeep
    Maserati
    Mitsubishi
    Nismo
    Nissan
    Ram
    Renault

    And also some of these brands rebadge and manufacture cars with GAC, Lada, and Mercedes. This could become very global. It would be weird to think that the Dodge Durango, Nissan Altima, Mitsubishi Pajero, and Renault Clio have a relation.

    But then again, it might end up failed like the GAC, Hyundai, and Peugeot askings.

    • mist

      Lada and Dacia are fully part of Renault.
      Ferrari is out of FCA, not concerned at all.
      Nissan and Mitsubishi are a separate entity in the Alliance. Nissan would become the small member.

      • Six Thousand Times

        Is Lada actually a part of the group or is that just a tie-up?

        • Joe

          Lada is promoted on Groupe Renault’s global site as part of the group alongside Renault, Dacia and Renault Samsung, which is also missing from the above list.

          • Six Thousand Times

            Also forgot about Samsung. Android Auto should work well in those.

          • ThatGuy

            Six T.T is the latest R-Link(Renault) is decent, but the previous gens were a tad bit iffy, meaning hard to work. Owned a few and they work well just are a bit slow and are not as intuitive or user friendly like the VAG group ones. But once you know the system its ok, not great but ok. But they getting better i can say.

          • Six Thousand Times

            I was kind of kidding given Samsung’s excellent phones but OK, good to know.

          • ThatGuy

            Nah Six T.T its not like that, apologies if it came off aggressive, that’s not the intention. I like you find it weird that Samsung has the agreement with Renault but the system is not that good, considering how great samsung is, but how bad(for lack of a better word) the system in the cars are.

        • designer_dick

          AvtoVAZ is a consolidated subsidiary of Renault, which owns 68% of the company.

          • Six Thousand Times

            Didn’t know that, Thanks.

        • mist

          Renault owns the majority of AvtoVAZ.

      • Сафиуллина-Мохамед Рамазанов

        Honestly Nissan will buy back the share Renault have and keep its share in Renault

    • jcdbs

      Abarth
      Alfa Romeo
      Alpine
      Chrysler
      Dacia
      Datsun
      Dodge
      Ferrari
      Fiat
      Infiniti
      Iveco
      Jeep
      Lada
      Lancia
      Maserati
      Mitsubishi
      Nissan
      Ram
      Renault
      Samsung
      Venucia

      • Samsung motors Is now Renault Samsung… outside of the SM7, it’s only Renault cars. The idea is to kill the Samsung name, problem is… Koreans know the name Samsung, and like Japan like to buy National. Samsung sold all to Renault, only the name is left.

  • mist

    Renault buying back Jeep.

    • Craig

      It is indeed!

  • Callanish

    What happened to the Jaguar / Landrover aquisition. Still happening or was that all B.S?

    • XtremWize

      PSA is currently negotiating with Tata to acquire Jaguar / Landrover.

  • europeon

    LOL

  • Six Thousand Times

    That’s funny: Renault back in with Jeep again.

  • Two of the worst car manufacturers merging, what could go wrong? Suckers…hahaha

  • Galaxium

    Still believe that Hyundai should have bought them out.

  • kachuks

    Is this really the smartest move to make, when the implications of Ghosn’s actions and their effects are not yet known?

    • Liam Paul

      you mean ghosn defending himself from a coup?

  • Noah Milne

    If FCA’s products weren’t cheap enough…

    • Ben

      C’mon man. Are they going to last as long as a Toyota, no, but not much else will. Are they well crafted such as a Mercedes? No, but they’re not sold at that price point. They push the envelop on affordable performance, agreeable technology and vehicle design. They’ve got their flaws like everyone else.

      • ThatGuy

        Ben not to forget the diesel engines in Mercedes Benz come from Renault, the A Class and CLA respectively. Besides Renaults are reliable mechanically, electronically their gremlins are the issue. I have owned a few and fuses as well as light bulbs have been the regular change, mechanically never had a break down or had any engine problems. This Merger will help FCA with their small car offering as they will benefit from the Renault NIssan parts and slightly above average reliability. All in all a good bit of business, but i will say this it seems Renault is doing GM move, with NIssan and Mitsubishi under their Belt as well, i hope they can manage all the partners without compromising their average quality .

  • Ben

    Well, there goes my hopes of getting another Viper in the future.

  • Paulbe

    So, Renault get Jeep back?

  • RobPul

    FCA could buy Renault as they have higher capitalisation and operating profit. The fact that they’ll end up merging as equals or with Renault taking control is down to the Agnelli family seeing automotive as less strategic and the French trying to keep control of their groups. In any caee the resulting group will be very competitive, two sides with presence in Europe and the Americas, access to Asia and various areas of complementary strengths.

  • Liam Paul

    they announced a 50/50 merger

  • Six_Tymes

    The real reason the “executives” at Nissan railroaded Ghosn? Some how the other merger would not have lined their pockets?

    • europeon

      Nissan isn’t part of this “merger”. Renault and Nissan had a partnership, they were not the same company. It’s unclear what will happen with the Renault-Nissan alliance if the FCA-Renault merger will happen.

  • Mr. EP9

    You’re going to be waiting a long time because chances are a handful of those brands are going to still be around when you’re close to kicking the bucket.

  • ThatGuy

    In my opinion you know what would be great, take every thing under the skin of a Renault Megane RS and put that in the Dodge Dart, Meaning engine, electronics, chassis and suspension and boom and reliable sporty Dart. The Dart looked good but failed in literally every other department.

Watch 170 Cars Do Burnouts At The Same Time In Colorado

The Australians previously held the record when 126 vehicles did burnouts at the same time.

Bespoke Rolls Royce Cullinan Will Attack Your Eyeballs With Its Fux Orange Paint

Rolls Royce’s latest bespoke creation comes with a pretty bright paintjob.

Is Hyundai Working On An i10 N? These Spy Shots Strongly Suggest It

The twin exhaust tips, different grille, and bigger wheels could identify this car as the Hyundai i10 N.

2020 Audi RS Q8 Drops Camo In Favor Of Audi Sport Livery

Special livery aside, this 2020 Audi RS Q8 prototype is basically undisguised.

BMW Testing New Techniques For The Production Of The Electric INext SUV

BMW’s 2021 “technology flagship” will feature more innovations than meets the eye.

2020 Mercedes-Benz EQV Electric MPV Unveiled With 405 Km Range

The Mercedes EQV has a 150 kW electric motor that drives the front wheels and will premiere in Frankfurt.

Alfa Romeo Is Just 1.2s Off The Pace Of Leading F1 Teams

Alfa Romeo Racing is currently seventh in the standings, but within striking distance of Renault and Toro Rosso.

2020 SsangYong Korando Lands In UK With £19,995 Base Price

The all-new SsangYong Korando only offers 4WD with the 136 PS (134 hp) 1.6-liter turbo diesel.

Hyundai i30 N Project C Lightweight Special Rushing To Frankfurt

The Hyundai i30 N Project C will pack CFRP components, motorsport wheels, and a revised aero package.

Your Attention, Please: This Is The Porsche Taycan EV’s Dashboard

The layout of the electric sports sedan takes lots of styling cues from the latest-gen 911, aka 992.