By on June 4, 2019

As perviously reported, Fiat Chrysler is currently hard at work, hoping to impress Renault to a point where it will pull the trigger on possible merger. FCA is now in talks with the French government, which owns 15 percent of Renault, hoping it will also find the 50/50 proposal agreeable.

Concessions are already being made. FCA has agreed to France’s request to give the government a seat on an prospective eleven-member board, which also holds four seats for Renault and one for Nissan. Rumors have also suggested that the automaker is considering moving its headquarters to Paris to appease the country.

While France appears to be somewhat receptive, Renault appears to be taking things to the next level. Following a week of discussions with FCA, the company announced it would be taking the rest of the day to give the matter serious consideration. 

“The Board of Directors has decided to continue to study with interest the opportunity of such a combination and to extend the discussions on this subject,” Renault said in a statement.

The press release follows three-hours of discussion on the matter scheduled on Tuesday. The Board said it would reconvene on Wednesday, June 5th. That would appear to imply that the company intends to use the entirety of the day to continue examining FCA’s proposals or possibly put together an announcement regarding the merger’s condition. Either way, expect more news on the subject very soon.

[Image: Jevanto Productions/Shutterstock]

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15 Comments on “Renault Taking Time to Consider FCA Merger Proposal...”


  • avatar
    deanst

    It’s handy to have all the brands you should avoid under common ownership……

  • avatar
    SCE to AUX

    “…the company announced it would be taking the rest of the day to give the matter serious consideration”

    The rest of the day?! Why so long?

  • avatar
    Jeff S

    Makes it easier for me–one less brand to consider.

  • avatar
    thornmark

    they should rename the company “French Leyland” because its precursor was British Leyland and all that entails

    RAM and JEEP are the jewels, the rest- Renault, Nissan and FIAT- is effluent

  • avatar
    schmitt trigger

    What Thornmark said +1

    How desperate FCA must be, to be considering such a merger?
    Really, the winner here would be Renault.

    • 0 avatar
      Kyree S. Williams

      I disagree. Renault has extensive EV technology, and sells a considerable number of the EVs in Europe. FCA could get access to that technology, which would be a saving grace to them, since they don’t have much.

      I’m not sure what Renault would get out of the deal, unless they wanted an inroads to the US market. FCA’s products are profitable, but many of them are older than Methuselah, and FCA is going to need to make considerable investments into more modern and fuel-efficient hardware over the next decade. Meanwhile, FCA’s Euro-market cars are fairly mediocre and Renault already has a robust heavy truck division (and so doesn’t need to rely on FCA’s stuff).

      • 0 avatar
        rpol35

        I have to agree with you, FCA is sorely lacking in EV technology and this is a way to buy into it much as the old Chrysler Corp. was willing to buy into the SUV market by acquiring AMC (Jeep really) which was then half owned by Renault. Recall the Renault baggage that Chryco had to take from Renault (Premier, a “French” Monaco, etc.) to make the deal work?

        Beyond EV technology, Renault is a turd, right along with Fiat. Sometimes you have to buy a whole lot of crap to get the one component that you really want or need. The rest is fodder and can hopefully be ditched.

        Giving the French govt. a seat on the board, however, would be a non-starter for me. We’ll see how desperate FCA really is I guess; me thinks probably too desperate for their own good.

  • avatar
    dantes_inferno

    Renault + FCA = “Dodge testing. RAM into production”

    No thanks.

  • avatar
    Jeff S

    Agree the benefit to Renault would be an in to the US car market. Renault does not have such a good history in the US market–Renault Dauphin. Maybe Renault has improved their quality but I would be skeptical. Fiat from day one of the Chrysler merger wanted to get mergered with another manufacturer. I believe if this merger happens it will be the end of the Chrysler and Dodge brands. Maybe I am wrong but both brands have been languishing for years. Jeep and Ram are the most valuable brands that FCA has and both brands have both have had more resources put in them than Chrysler and Dodge.

  • avatar
    I Stole Your Cookies

    Mercedes should tap Renault on the shoulder and quietly say ‘yeah, we tried working them and…it didn’t really work out too well. Just sayin’.’

  • avatar
    Ryan

    What is to be gained here? International distribution? Renault has EV’s and little else to offer. FCA has Jeep and Ram, with little else to offer. Merger of… Mostly Junk Brands?

  • avatar
    thornmark

    Deal is dead. Apparently the French government mucked it up.

    GOOD.


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