Fiat Chrysler Automobiles (FCA) has withdrawn from a proposed merger with Renault, ending speculation of a game-changing partnership that would have birthed one of the largest auto groups in the world, leapfrogging General Motors and breathing down the neck of the Volkswagen Group and Toyota.
However, it wasn’t to be. According to FCA the French government, which has a 15% stake of Renault, requested to postpone the vote on the merger.
In a statement, FCA said that it “has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
This potential merger was the latest example of auto groups looking to partner up, in order to overcome new costs of manufacturing and developing electric and autonomous vehicles.
Although it seems that FCA is getting the better part of the deal, thanks to the Renault-Nissan Alliance and its leading EV technology, Renault would have been able to penetrate the US market, where it has struggled in the past.
According to the American automaker, the partnership would have created annual cost savings of more than €5 billion.