Report: Fiat Chrysler Launches Operation Woo France
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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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.
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.