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]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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