Fiat Chrysler Automobiles and Groupe PSA both confirmed their intention to merge on Thursday, verifying reports that the pair were in the final stages of approving the deal. The arrangement will be a 50-50 share swap, with the new company’s shares listed on the New York, Paris and Milan stock exchanges.
The duo hope to finalize a deal in the coming weeks to create a group with 8.7 million in annual vehicle sales. That would make it the fourth-largest automaker in the world — behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi alliance.
“There is still plenty of work to do before we reach a formal agreement, but what’s clear is that the opportunity that represents for both companies is very compelling,” FCA head Mike Manley told Reuters. It would appear the arrangement is getting plenty of support. French and Italian leadership have both endorsed the move, provided there are no significant job losses in either country.
The French media is reporting that Renault CEO Thierry Bolloré could be removed as part of a greater initiative to clean house within the Renault-Nissan-Mitsubishi Alliance. As usual, the cornerstone of the controversy stems from the executive’s close ties to Carlos Ghosn.
That relationship makes him suspect, as numerous high-ranking employees at Nissan are currently under suspicion of having helped or benefited from the alleged financial misdeeds surrounding the ousted chairman. In fact, the Japanese automaker had to select a new CEO in short order after information emerged implicating former corporate head Hiroto Saikawa — encouraging his September resignation.
Now there’s a campaign in place to distance the automaker from Ghosn-era hires and legacy staffers with deep links to him. Everyone expects Renault to do the same.
Without the glue that was Carlos Ghosn holding the Renault-Nissan Alliance together, some of the partnership’s joint-business operations are reportedly being disbanded as corporate relations continue to sour. Nissan quietly started dissolving the Office of the CEO in April, after a special corporate governance committee claimed it was one of the reasons why it was so difficult to detect Ghosn’s alleged financial misconduct.
The Japanese automaker has since sought to rejigger its own management structure, as per the committee’s suggestions, however Renault intends on blocking those governance changes. Now the Financial Times is reporting that the two companies are gradually unwinding departments providing oversight for collaborative efforts related to light commercial vehicles, sales and marketing, communications and more.
Renault reportedly wants to restart merger talks with Nissan next year and is even considering a follow-up marriage with another automaker — possibly Fiat Chrysler.
While the Renault-Nissan-Mitsubishi Alliance’s official goals for 2019 are difficult to pin down, a memorandum of understanding was recently established to improve corporate synergy and reassure the public that members can play nice after the drama-filled arrest of Carlos Ghosn. However, it would seem that the long game still includes mergers.
Earlier this month, top executives from Renault, Nissan and Mitsubishi appeared together to prove to the world that the alliance is not in jeopardy. It was known that Ghosn had been advocating for a merger against Nissan’s wishes for years, and many, including the defamed former alliance boss, have speculated that the associated pressures aided in the company acting against him in order to see him brought up on charges.
A meeting rumored to be targeted at developing a new board to oversee the Renault-Mitsubishi-Nissan Alliance took place earlier this week at Nissan’s global headquarters, sans Carlos Ghosn, with the automakers agreeing to a consensus-based governing strategy. At the heart of this pact is the need to diffuse tensions between France and Japan.
If you’ll recall, Nissan had grown perturbed by its perceived lack of autonomy within the alliance and repeated merger talk coming from Ghosn prior to his arrest. The man himself claimed that the corporate conflict is ultimately what led to his undoing — suggesting Nissan’s CEO simply wanted him out of the picture before he was fired.
Rather than focus entirely on his upcoming court case, Carlos Ghosn, the former chairman of the Renault–Nissan–Mitsubishi Alliance, attempted to gain access to a meeting at Nissan Motor Co. to explain himself to the board.
Unfortunately for the fallen industry titan, the Tokyo District Court said such a meeting would violate the terms of his bail by placing him in direct contact with individuals involved in the charges brought against him.
Hoping to minimize development costs, Volkswagen Group and Ford Motor Co. recently forged an automotive alliance. Collaborative projects officially include commercial vans and pickup trucks, though the duo are also said to be working together on electric and autonomous vehicle development. Unfortunately, trouble in pinning down the details has slightly soured the relationship.
Through the alliance, Ford could make use of VW’s MEB platform, aiding its plan to roll out a myriad of electric cars in the coming years, while Volkswagen would have access to the Blue Oval’s autonomous unit, Argo AI. But the Germans reportedly aren’t interested in paying what Ford’s asking.
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