FCA Discussing Revised Renault Merger Plan To Win Over French Government

Fiat Chrysler Automobiles is said to be working on a revised merger bid for Renault in order to convince the French government.

Sources close to the discussions tell Reuters that the Italian-American car group is discussing a Renault special dividend and a host of new job guarantees. In addition, it has been proposed that if Renault goes ahead with the merger, the new company’s headquarters will be located in France and the French state will be granted a seat on the board.

The revised merger proposal also increases the guarantees to maintain Renault’s French blue-collar jobs and industrial sites from the initial two years up to a promised four.

Also Read: FCA CEO Sold $3.5 Million In Shares After Making Merger Proposal To Renault

It’s of the utmost importance for FCA to get the French government on its side as the state is the largest shareholder in Renault with a 15.01 per cent stake and also has two seats on its board. FCA, Renault, and French government officials have all declined to comment on the report.

FCA formally presented a merger plan to Renault last Monday and proposed the two companies be purchased by a listed Dutch holding company with its ownership split equally between current FCA and Renault shareholders. The plan will also see Nissan own a 7.5 per cent stake in the new automotive group.

Although initially the new company would be based in a neutral city, such as London, a government demand from France means the company that its headquarters will, in all likelihood, be located in the greater Paris area.

  • charlotteharry57

    Early AM consensus on the Net, which I agree with, is that this is dreadful news for us Americans. Renault basically has NOTHING to offer us and they will ultimately control the merger if this is approved. I’d personally just assume Renault get out of the deal altogether. Because, while it will take time, they’ll get what they want and spit out the remains of FCA, Nissan and Mitsubishi. Plus, just like Fiat, Renault has a bad rep in this country (I was never a fan of the FCA merger to begin with).

    • Romain AA

      Yeah right, NOTHING to offer. People at FCA are just plain masochistic. They went to Renault for the sheer pleasure of being fooled and eventually fired and remembered as traitors and losers.
      The electric and PHEV platforms are just worthless these days. Access to the Russian and Indian markets don’t mean anything, just look at the demographics.

      It will always baffle me how the internet knows so much better than professionals and shareholders.

  • Craig

    FCA should be very careful. It sets up a horrible precedent if you approach a so-called ‘merger of equals’ with your hat in hand.

  • Elmediterraneo

    That could be a good idea to inject fresh money into Alfa Romeo’s and Maseati’s development but without the Ferrari engines for Maserati that would be pointless. The market needs premium italian cars but saddly their quality and the range have always been under the germans who are the TOP KINGS of premium/luxury cars.

  • dumblikeyou2

    So many nails in so many coffins.

  • Paul

    This is a disaster in the making from all angles. Time to get the Hell out of Dodge, pun intended.

  • kachuks

    I’d rather the French gov’t not be involved. Let the bureaucrats manage the bureaucracies, not the private entities.

    • Jayen DeHaart

      So we let private entities run themselves into the group (Chrysler) multiple times and then the government had to pay the bill to bail them out. Over and over again? Ok sounds like a much better idea to me.

  • Jayen DeHaart

    PSA? That’s not Renault.

  • Romain AA

    What’s PSA has to do with any of this? Go back to sleep Stephen, you need some rest.

    • Stephen G

      I corrected my comment. Yes I do need rest…trying to right all wrongs is tiring work!

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