Fiat Chrysler proposes merger with Renault

Fiat Chrysler said to be in advanced talks to ally with French automaker Renault

The proposed merger would create the third largest global OEM.

Another French government official told the Associated Press that France would prefer a tie-up within the existing Renault-Nissan-Mitsubishi alliance. Before the deal is closed, to maintain equality across different markets, FCA shareholders would get Euro 2.5 billion as a dividend and distribution of Comau's shares to FCA or an incremental Euro 250 million dividend.

Anticipating such sensitivities, FCA stressed "new opportunities for employees of both companies" under the merger.

Nissan was left with less clout following the November arrest of Carlos Ghosn, the architect and chairman of the three-way alliance, for alleged financial crimes during his time as leader of the Japanese carmaker.

The FCA-Renault plan would see the two carmakers merged under a listed Dutch holding company. Carmakers are also under pressure from regulators, particularly in Europe and China, to come up with electric vehicles so they can meet tougher pollution limits.

FCA has a highly profitable North American RAM trucks business and Jeep brand but has been losing money in Europe, where it may also struggle to keep pace with looming carbon dioxide emissions curbs.

Renault, by contrast, was an early mover in electric cars, with relatively fuel-efficient engine technologies and a strong presence in emerging markets, but no USA business. Falling sales in the world's biggest markets - China, the U.S. and Europe - have brought fresh urgency to consolidate.

It would also create the challenge of managing a large number of brands, from high-end Maseratis to budget Dacias.

Renault shares surged as much as 16.7%, while Fiat rose as much as 19.5%, the most ever.

FCA-Renault, like nearly every possible automotive pairing, had been studied intermittently for years by dealmakers.

FCA chief Mike Manley said earlier this month in Milan that his company would play an "active and constructive" role in this process.

Fiat said the combined business would be 50 per cent owned by FCA shareholders and 50 peer cent owned by those of Renault.

FCA said there will be no plant closures as a result of the consolidation.

The Financial Times, quoting multiple people informed on the talks, said: "The agreement may ultimately lead the carmaker (Fiat-Chrysler) to join the Renault-Nissan-Mitsubishi Alliance in the future", if Nissan can be won over.

Fiat Chrysler and Renault are set to confirm tie-up talks on Monday, with the board of the French carmaker called to an early morning meeting to discuss the situation. It books the benefits from the partnership as "synergies", which totaled some 5 billion euros in 2018.

Decision-making by such a board is unlikely to be straightforward, some analysts warned.

On hearing news of the possible tie-up, Italy's rightist League party of Deputy Premier Matteo Salvini, who has in the past clashed virulently with French President Emmanuel Macron, swiftly invoked Italy's "national interest" and dangled the option of the Rome government stepping in.

"This requires quite a bit of creativity".

Related news:

Hot News

isis-killer-beheading-video-story-top Some OnePlus 7 Pro users are reporting issues with the phone's touchscreen
May 27, 2019 - 01:03
The OnePlus 7 Pro starts at $669 and it heads even deeper into flagship smartphone territory than previous OnePlus models. For those wondering, rest assured: " Android Q will also make its way to the OnePlus 5 and 5T", stated the forum post .

isis-killer-beheading-video-story-top Ancestors: The Humankind Odyssey Gets August PC Release Date
May 27, 2019 - 00:52
Ancestors: The Humankind Odyssey is a game about player evolution, discovery, and survival. The game is being published through 2K and Take-Two's Private Division wing.

isis-killer-beheading-video-story-top Drake is really canceled after Game 4
May 26, 2019 - 00:31
Serge Ibaka had 17 points and 13 rebounds for the Raptors , who improved to 7-2 at home this postseason. In Game 3, Toronto was a home-court favourite, giving up about 2½ points in most Las Vegas books.

isis-killer-beheading-video-story-top Coats says spy agencies to cooperate with Barr
May 25, 2019 - 00:34
Trump frequently says his campaign was spied on, and Barr has backed him up. The president's supporters largely applauded the order.

isis-killer-beheading-video-story-top Jorginho would be surprised to see 'relaxed' Sarri leave Chelsea
May 24, 2019 - 00:32
The move would come five years after he was released by Chelsea as a player before he signed for Premier League rivals Manchester City .

isis-killer-beheading-video-story-top Jussie Smollett's Cook County criminal documents ordered unsealed
May 24, 2019 - 00:31
Spears' clients, created publicity, and now her clients want to use that against someone who wants to get their rights back". The files were originally sealed under an IL law that allows the documents of dismissed cases to remain sealed.

isis-killer-beheading-video-story-top Microsoft Just Yanked Huawei Laptops From Its Online Store
May 23, 2019 - 00:45
However, no carve-out was made for any new smartphones or networks Huawei is preparing to roll out in the US. Despite the Google ban, Huawei said Tuesday that its latest smartphone, the Honor Pro 20, will use Android .

isis-killer-beheading-video-story-top Google makes fun of iPhones by teasing this Pixel 3a feature
May 23, 2019 - 00:45
Google is yet to publicly acknowledge the problem , and this isn't the first time Pixel devices have been released with flaws. Every time, the user has to restart the phone by pressing the power button for a fairly long duration of up to 30 seconds.

isis-killer-beheading-video-story-top Deadly storms hit U.S. Southern Plains, more severe weather coming
May 23, 2019 - 00:44
Missouri Governor Mike Parson declared a state of emergency, citing flash flooding, "straight-line winds", heavy rain and hail. Eleven people were injured after trailers were flipped at an RV park near the speedway, and four of them were hospitalized.

isis-killer-beheading-video-story-top Apple updates MacBook Pro lineup with faster processors, new 8-core model
May 23, 2019 - 00:42
Along with announcing updates to its keyboard, Apple on Tuesday unveiled a slight update to its MacBook Pro lineup . There is also another model that gets 2.3GHz 8-Core i9 processor which can be boosted up to 4.8GHz.

isis-killer-beheading-video-story-top Iran's Rouhani Rejects Talks With Washington
May 22, 2019 - 00:43
But he's also signaled that the US will respond to any provocations and asserted that Tehran needs to initiate any talks. Iran says that its nuclear program is for civilian energy and medical uses and that it has never sought nuclear weapons.

isis-killer-beheading-video-story-top Palestinians shun Bahrain conference proposed by US
May 22, 2019 - 00:42
"Any Palestinian who would take part would be nothing but a collaborator for the Americans and Israel ", he said . Internationally-mediated talks to that end have been stalemated for years.

isis-killer-beheading-video-story-top Trump in Damage Control Mode, US Eases Ban on Huawei
May 22, 2019 - 00:42
China's government repeated its promise to defend Chinese companies overseas but gave no details of what Beijing might do. The recent US trade restrictions could also have an impact on Huawei smartphones, its second major line of business.

isis-killer-beheading-video-story-top Trump Responds to First Republican to Call for Impeachment
May 21, 2019 - 00:30
The Congressman's intervention, on Twitter , came as the Democrats remained divided on whether to push for Mr Trump's impeachment. Jim Lower announced Monday he's running for the western MI seat.

isis-killer-beheading-video-story-top Blazers head home for Game 3, down 2-0 to Golden State
May 21, 2019 - 00:25
They have to be willing to execute, make plays and help them out and loosen up the defense. The trio accounted for just 51 combined points in the first two games of the series.