Report: Fiat Chrysler Launches Operation Woo France

report fiat chrysler launches em operation woo france em

Fiat Chrysler’s desire to merge with Renault has the French government, which holds a 15 percent stake in the French automaker, more than a bit worried. The government has already issued a list of guarantees it wishes to see before giving its blessing to the potential tie-up.

Now, a report claims FCA is working hard to win France’s trust, promising board representation and a French headquarters for the proposed entity.

According to sources who spoke with Reuters, FCA is in talks with the French government (and, presumably, Renault), with an improved offer on the table.

Last Monday’s proposal detailed a 50:50 merger that would be carried out under a Dutch holding company. Shareholders in each company “would receive an equivalent equity stake in the combined company,” FCA said, with the new entity employing an 11-member board. Four members would hail from Renault, another four from FCA, and one member would be selected by Renault’s alliance partner, Nissan.

Per Reuters‘ sources, FCA has agreed to France’s request to give the government a seat on the board. Under the plan, France’s stake in the entity would fall to 7.5 percent. As well, the sources claim the automaker is willing to base the company’s HQ in Paris. This is a change from earlier plans, in which FCA hoped to base its center of operations in a “neutral” location like London.

As well, both sides are discussing a special Renault dividend, as well as a lengthened period of protection for French autoworker jobs and assembly sites. FCA initially proposed a two-year guarantee; this has now broadened to four years, sources claim.

Nissan, viewed as the company with the most to lose out of the potential merger, has voiced its cautious approval of the ongoing talks from the sidelines. FCA Chairman John Elkann offered a nod in its direction last week, saying an FCA-Renault merger would include Renault’s alliance partners.

Renault is expected to decide whether to turn down FCA’s proposal or continue forward with merger plans this week.

[Image: Fiat Chrysler Automobiles]

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  • Jeff S Jeff S on Jun 03, 2019

    I don't hate the French but I don't want their cars. Bad enough Chrysler was acquired by the Italians but to add insult to injury now the French. I don't know which makes the worst cars reliability wise the Italians or the French. I don't think the Chinese would do any worse, possibly better. Since the last Chrysler product I owned was over 17 years ago I am even less tempted with this news to buy one of their products. I will be more inclined to buy another GM or Ford product if this merger takes place. Probably buy Japanese or South Korean since they are a known quality.

    • Manta9527 Manta9527 on Jun 04, 2019

      With all due respect, Jeff, the Italians are the reason we still have cars like the Dodge Challenger and Charger SRT, not to mention the Jeep line and Ram truck line.

  • Jeff S Jeff S on Jun 04, 2019

    Yes I understand the merger with Fiat but the Italians are known for unreliable cars. Great driving cars and some very nice looking cars but unreliable. Need I say more than Fix It Again Tony. I question how long the Challenger and the Charger will last under the leadership of Renault. As for Jeep and Ram those are the only brands that make a merger with FCA attractive to Renault. You need to give credit to Sergio for the Challenger and Charger and not so much Fiat. Sergio had some passion for vehicles unlike some of the other CEOs. I doubt Renault management will see Dodge in the same light as Sergio.

  • Islander800 That is the best 20-year-on update of the Honda Element that I've ever seen. Strip out the extraneous modern electronic crap that adds tens of thousands to the price and the completely unnecessary 400 pd/ft torque and horse power, and you have a 2022 Honda Element - right down to the neoprene interior "elements" of the Element - minus the very useful rear-hinged rear doors. The proportions and dimensions are identical.Call me biased, but I still drive my west coast 2004 Element, at 65K miles. Properly maintained, it will last another 20 years....Great job, Range Rover!
  • Dennis Howerton Nice article, Cory. Makes me wish I had bought Festivas when they were being produced. Kia made them until the line was discontinued, but Kia evidently used some of the technology to make the Rio. Pictures of the interior look a lot like my Rio's interior, and the 1.5 liter engine is from Mazda while Ford made the automatic transmission in the used 2002 Rio I've been driving since 2006. I might add the Rio is also an excellent subcompact people mover.
  • Sgeffe Bronco looks with JLR “reliability!”What’s not to like?!
  • FreedMike Back in the '70s, the one thing keeping consumers from buying more Datsuns was styling - these guys were bringing over some of the ugliest product imaginable. Remember the F10? As hard as I try to blot that rolling aberration from my memory, it comes back. So the name change to Nissan made sense, and happened right as they started bringing over good-looking product (like the Maxima that will be featured in this series). They made a pretty clean break.
  • Flowerplough Liability - Autonomous vehicles must be programmed to make life-ending decisions, and who wants to risk that? Hit the moose or dive into the steep grassy ditch? Ram the sudden pile up that is occurring mere feet in front of the bumper or scan the oncoming lane and swing left? Ram the rogue machine that suddenly swung into my lane, head on, or hop up onto the sidewalk and maybe bump a pedestrian? With no driver involved, Ford/Volkswagen or GM or whomever will bear full responsibility and, in America, be ambulance-chaser sued into bankruptcy and extinction in well under a decade. Or maybe the yuge corporations will get special, good-faith, immunity laws, nation-wide? Yeah, that's the ticket.
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