Renault And FCA Are Both Open To Restart Merger Talks

Fiat Chrysler and Renault-Nissan are reportedly still open to a potential merger but executives are wary of conditions imposed by both sides that could hinder the efforts for restarting talks.

Citing people familiar with the matter, Wall Street Journal reports that Renault officials remain optimistic, expecting that the outcome of Nissan’s shareholder meeting this week will enable them to restart the merger negotiations with FCA.

Nissan has also not rejected the possibility of an eventual deal but wants to reshape the alliance’s structure in order for them to be flexible and independent from each other.

Also Read: Japanese Government Allegedly Involved In The Collapse Of The Renault-FCA Deal

Renault CEO Thierry Bollore said previously that there are no talks between them and Fiat Chrysler after the latter withdrew its proposal.

FCA took their merger proposal off the table after the French government, Renault’s biggest shareholder, sought to further delay the talks in order to persuade Nissan to get on board with the deal. Fiat Chrysler officially put the blame on “political conditions in France” for its decision, and in order for the merger talks to restart, the French government must give up its sway over Renault according to people with knowledge of the situation.

Renault’s priority right now is to repair the relationship with Nissan, with the French government deeming it critical for the success of an FCA-Renault marriage.

A potential deal between Renault-Nissan and Fiat-Chrysler could create the world’s third largest automaker, offering big cost savings to all involved as the development of EVs and autonomous-driving technologies ramps up.

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  • Paul

    I think FCA needs to stay the hell away from this other duo.

    • designer_dick

      Funny you should say that – I’d recommend that Renault stay the hell away from FCA. On paper, they’re both solidly profitable, but one (Renault) maintains that profitability whilst spending big bucks on new platforms, new models and new technologies, while the other (FCA) maintains the illusion of robust profitability by milking its truck and SUV lines for everything they’re worth, investing next to nothing in either new platforms, new models or new technologies for its car divisions.

      • ThatGuy

        Yes and FCA has not done proper R&D in decades, this i would say is their lazy way of getting EV and platform technologies while cutting costs. FCA vehicles also have the worst reliability ever, so another score for them with the merger, and this opens market for them. For renault it would just scare in the USA market and even then it wont be cause they sell their cars there rather that the partnership shares engines, chassis and technologies.

  • Leconte Dave

    The company that make the most sense is Hyundai

  • Mr. EP9

    You think Nissan will be on board this time or will something torpedo it yet again?

  • Bash

    What is the benefit of Renault to FCA anyway, I’m talking from the end user perspective.

    • J. P.

      FCA could use Renault architecture for the next generation of it’s cars along with their hybrid and EV technologies. For example, a new Dodge Journey on the architecture that underpins the Renault Koleos

      • Bash

        Thats fine. But I was thinking of the next Charger/300, Till now I have no idea (perhaps no one too) about their future plans for these cars.

        • ThatGuy

          I assume Renault will let them do their thing and produce those vehicles under platform sharing. They will get USA engineers to do the V8 and big motors and small vehicles would share the groups engines. If done right it could be good. let wait and see, but this has been dragging out so long im not sure it will happen.

          I will also say i agree with the general consensus about building EV and so forth. I assume that would be the end goal. Cost cutting etc

  • J. P.

    It’s ironic that they’re having merger talks, Renault ended up giving Jeep and AMC over to Chrysler years ago and now they’re trying to merge together, it’s ironic as hell. It’s technically giving Jeep back to Renault along with receiving other brands in the FCA stable.

  • charlotteharry57

    Oh just do it. Tired of hearing about it. RAM by Renault, here we go. And, hiccup, Jeep, by Renault.

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