Cars

Published on May 27th, 2019 | by Subhash Nair

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Groupe Renault Might Merge with Fiat-Chrysler Alliance

Shortly after rumours began to circulate, we now have confirmation that Groupe Renault and FCA are in talks for a 50:50 merger. The offical press release doesn’t reveal much of anything. In fact, this is it verbatim.

Groupe Renault confirms that it received a proposal from FCA (Fiat Chrysler Automobiles) regarding a potential 50/50 merger transaction between Groupe Renault and FCA.

Renault’s Board of Directors will meet this morning to discuss this proposal.

Hence, a lot of conclusion being drawn about this deal are speculative. Bloomberg, for instance, says that the deal will not involve Mitsubishi or Nissan, who are the 2 other parties to the Renault-Nissan-Mitsubishi Alliance. In fact, there’s talk that the deal is being negotiated without involving those Japanese firms in the process.

Both the FCA and Groupe Renault stand to benefit greatly from this merger. Right now, Renault has virtually no access to the United States market, while brands under FCA are largely kept out of the Russian market. Both companies have yet to form a major foothold in the South East Asian region, but that may be part of the reason for this push.

Interesting times ahead. A Fiat-Chrysler-Renault-Nissan-Mitsubishi Alliance could be large enough to cause Toyota to break a sweat. And it would definitely put smaller auto companies at a significant disadvantage.

Here are what vehicle brands would be under the umbrella of a complete merger:

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

About FCA

Fiat Chrysler Automobiles (FCA) designs, engineers, manufactures and sells vehicles and related parts, services and production systems worldwide. The Group operates 102 manufacturing facilities and 46 R&D centers; and it sells through dealers and distributors in more than 135 countries.

FCA’s automotive brands include Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram, Maserati. The Group’s businesses also include Mopar (automotive parts and service), Comau (production systems) and Teksid (iron and castings).

In addition, retail and dealer financing, leasing and rental services in support of the Group’s car business are provided through subsidiaries, joint ventures and commercial arrangements with third-party financial institutions.

FCA is listed on the New York Stock Exchange under the symbol “FCAU” and on the Mercato Telematico Azionario under the symbol “FCA”.

About Groupe Renault

Groupe Renault is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured trucks, tractors, tanks, buses/coaches and autorail vehicles.

According to the Organisation Internationale des Constructeurs d’Automobiles, in 2016 Renault was the ninth biggest automaker in the world by production volume. By 2017, the Renault–Nissan–Mitsubishi Alliance had become the world’s biggest seller of light vehicles.

Headquartered in Boulogne-Billancourt, near Paris, the Renault group is made up of the namesake Renault marque and subsidiaries, Alpine, Automobile Dacia from Romania, Renault Samsung Motors from South Korea, and AvtoVAZ from Russia. Renault has a 43.4% controlling stake in Nissan of Japan, and a 1.55% stake in Daimler AG of Germany (since 2012, Renault manufactures engines for the Daimler’s Mercedes A-Class and B-Class cars).

Renault also owns subsidiaries RCI Banque (automotive financing), Renault Retail Group (automotive distribution) and Motrio (automotive parts). Renault has various joint ventures, including Oyak-Renault (Turkey), Renault Pars (Iran). The French government owns a 15% share of Renault.

According to the Organisation Internationale des Constructeurs d’Automobiles, in 2016 Renault was the ninth biggest automaker in the world by production volume.[2] By 2017, the Renault–Nissan–Mitsubishi Alliance had become the world’s biggest seller of light vehicles, bumping Volkswagen AG off the top spot.[8]


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