Groupe Renault’s Board of Directors says it will ‘study’ with Fiat Chrysler Automobiles the potential 50-50 merger. The proposed combination would create the world’s third largest automotive group. The combined group’s portfolio would include such brands as Maserati, Alfa Romeo, Lada, Jeep and Ram. FCA says the new group would be a world leader in EV technology.
In a press statement Renault says: ‘After careful review of the terms of FCA’s friendly proposal, the Board of Directors decided to study with interest the opportunity of such a business combination, comforting Groupe Renault’s manufacturing footprint and creating additional value for the Alliance’.
An earlier FCA press release states: ‘The case for combination is also strengthened by the need to take bold decisions to capture at scale the opportunities created by the transformation of the auto industry in areas like connectivity, electrification and autonomous driving’.
It adds: ‘The combined business would sell approximately 8.7 million vehicles annually, would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis’.
FCA says there will be no plant closure as a result of the merger. The benefits would be achieved through more capital efficient investment in common global vehicle platforms, architectures, powertrains and technologies.
To watch our interview with Gilles Normand, SVP, Electric Vehicle, Groupe Renault. Click on the link.