Renault Taking Time to Consider FCA Merger Proposal

Matt Posky
by Matt Posky
renault taking time to consider fca merger proposal

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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  • Jeff S Jeff S on Jun 05, 2019

    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.

  • I Stole Your Cookies I Stole Your Cookies on Jun 05, 2019

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

  • Ryan Ryan on Jun 05, 2019

    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?

  • Thornmark Thornmark on Jun 05, 2019

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