Steve Walker 2019-05-27 08:15
Fiat has proposed a full merger with Renault that would create the world’s third largest car maker.
Discussions for a £33bn merger between Fiat Chrysler Automobiles (FCA) and Renault have been officially confirmed by FCA in a statement. The deal would see Fiat and Renault each own 50% of the new car manufacturer and would bring efficiency savings in excess of 5bn euros in addition to to those Renault already enjoys with its existing Alliance partners, Nissan and Mitsubishi.
The new car manufacturing giant that will be created should the deal to go ahead will have combined annual sales of 8.7m vehicles, placing it third in the current global car manufacturing league table behind Toyota and Volkswagen.
The plan put forward by FCA would not require any plant closures with the savings coming from increasing and pooling global development budgets for new car platforms, engines and other technologies. The plan also claims that the deal would lead to the creation of a “broad and complementary brand portfolio” that would “provide full market coverage, from luxury to mainstream”.
Nissan’s president and CEO, Hiroto Saikawa, refused to comment specifically on the Renault FCA deal but said that: “I’m open to any forward-looking discussions to strengthen the alliance”. He would also not confirm whether Renault had given Nissan any details of the mooted FCA deal ahead of Fiat’s announcement.
Any deal between Renault and the Fiat Chrysler group would need buy-in from Nissan and could see FCA effectively join the Renault Nissan Alliance. Discussions around the future for the Alliance have already been taking place in the wake of the arrest of its long-standing boss Carlos Ghosn.
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