FCA Chairman: Make No Mistake - We're Still on the Prowl

by Steph Willems

June 6th, 2019 2:04 PM

fca chairman make no mistake were still on the prowl

Thursday night’s falling apart of the proposed Fiat Chrysler-Renault merger was a setback for FCA, but the automaker wants everyone to know it remains on the hunt for a willing partner. Essentially, nothing’s changed from the days when former CEO Sergio Marchionne made eyes at the likes of General Motors and Volkswagen, only to receive the cold shoulder.

Sure, it didn’t work out with the French, Chairman John Elkann wrote to FCA employees, but that doesn’t mean FCA won’t soon find a date for the dance.

The letter, obtained by Reuters, sees Elkann claiming the company withdrew its proposal to Renault to protect FCA employees and stakeholders, adding it took the discussions “as far as they can reasonably go.”

“The decision to engage in these discussions with Groupe Renault‎ was the right one and one we took after much preparation on many fronts,” the Agnelli family scion wrote.

Neither side in the abortive merger has said much about what specific issue or issues caused the talks to fall apart, but FCA’s comment about “political conditions in France” lends credence to rumors of hefty guarantees demanded by the French government. Those included a French headquarters for the combined entity, assurances for French workers, and a special dividend for Renault shareholders. Allegedly, the French government also wanted a representative on the board.

Not deterred by the experience, FCA remains on the hunt for someone to share platforms and development costs with.

“FCA, under Mike Manley’s leadership, is an outstanding business … with a clear strategy for a strong, independent future,” Elkann wrote. “We will continue to be open to opportunities of all kinds that offer the possibility to enhance and accelerate the delivery of that strategy and the creation of value.”

One future possibility is a strengthened partnership with France’s PSA Group, which was the subject of numerous rumors earlier this year.

[Image: Fiat Chrysler Automobiles]

#Fca #FiatChryslerAutomobiles #Mergers #Partnerships #Renault

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Den E on Jun 10, 2019

I've always felt the VW Group would be a perfect fit for FCA, and would provide VW with everything they are lacking, especially in the US - light/heavy duty trucks from RAM, rugged off-road vehicles from Jeep, and a minivan platform from Chrysler. The VW Group has been masterful at managing it large cache of brands, and would certainly have the capital leverage needed to breath new life in the Fiat, Alfa-Romeo, and Maserati product portfolios, as well. Make it happen!

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- Steve203 on Jun 10, 2019
  
  VW is far too large outside of North America for a merger with FCA to clear what in the US is termed "anti-trust" scrutiny. In Europe, VAG holds a 23% market share. Nearest competitor is PSA with a 16% share. No way would VAG be allowed to add Fiat's 6+% share to that. In Brazil, FCA is in second place with a 17.47% share, VW is third with 12.96%. Combined, they would tower over the current market leader, GM, which has a 18.11% share.
  
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Steve203 on Jun 10, 2019

And now, on Monday, the investment bankers are still planting stories advocating the divestment of Nissan as that is the only way the Renault/FCA merger could clear US anti-trust scrutiny, so the bankers can collect their multi-million dollar fees. "Exclusive: FCA-Renault revival may hinge on Nissan stake cut - sources" https://finance.yahoo.com/news/exclusive-fca-renault-revival-may-031400971.html While the French government, as a Renault stakeholder, supports the alliance as, long term, Renault realizes more synergies with Nissan. "France's Le Maire says 'essential' to bolster Renault-Nissan alliance" https://www.reuters.com/article/us-renault-m-a-fiat-chrysler-le-maire/frances-le-maire-says-essential-to-bolster-renault-nissan-alliance-idUSKCN1TA0AD So, who will win, the bankers looking to make a quick buck, or the French government, more concerned with the long term viability of Renault, and Renault worker's jobs?

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