{"id":506,"date":"2019-05-27T23:30:42","date_gmt":"2019-05-28T06:30:42","guid":{"rendered":"https:\/\/blogv2prod.wpenginepowered.com\/blog\/?p=506"},"modified":"2021-02-08T03:23:06","modified_gmt":"2021-02-08T11:23:06","slug":"fiat-chrysler-confirms-merger-talks-with-renault","status":"publish","type":"post","link":"https:\/\/www.carparts.com\/blog\/fiat-chrysler-confirms-merger-talks-with-renault\/","title":{"rendered":"Fiat Chrysler Confirms Merger Talks with Renault"},"content":{"rendered":"\nReading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Fiat Chrysler Automobiles (FCA) announced on May 27 that it has made a proposal to French automaker Renault for a “transformative merger”.<\/p>\n

The deal, once made official, is expected to create a world leader and help address some of the weaknesses of both companies.<\/p>\n

According to FCA, the 50 percent of the combined business will be owned by FCA shareholders, while the other half will be owned by Renault shareholders.<\/p>\n

The proposal was finalized in overnight talks with Renault and was revealed to have been discussed at a meeting of Renault’s board on Monday.<\/p>\n

According to statement by FCA, the deal would create an automaker with a strong presence across key regions, automotive markets and technologies, and is expected to generate 5 billion euros ($5.6 billion) in annual savings.<\/p>\n

The “broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream,” said FCA.<\/p>\n

It also clarified that both brands have not discussed plans on plant closures.<\/p>\n

\"\"
The FCA and Renault merger, if finalized, is expected to generate 5 billion euros ($5.6 billion) in annual savings for the automakers.<\/figcaption><\/figure>\n

Once finalized, the merge would put the two companies under a listed Dutch holding company. FCAE shareholders will be paid a 2.5 billion-euro special dividend, after which each group would be given 50 percent of the combined entity in new stock.<\/p>\n

As of Friday, May 24, FCA and Renault had a combined market value of 32.6 billion euros.<\/p>\n

In 2018 alone, the two companies collectively built approximately 8.7 million cars, a number reported to be significantly more than those of Hyundai Motor Group and General Motor, but behind the world’s two biggest automakers — Volkswagen Group and Toyota Motor — which produced 10 million vehicles last year. Renault, however, is also considered to have reached the milestone with its existing alliance with Nissan and Mitsubishi.<\/p>\n

The FCA-Renault merger, including the companies’ respective Japanese partners, would bring the total to more than 15 million vehicles a year, with a strong presence in all major markets and premium brands. Among these brands are Jeep, Maserati, Alfa Romeo, and Infiniti.<\/p>\n

Both FCA and Renault went through changes in its leadership in 2018 after FCA’s Sergio Marchionne died and Carlo Ghosn of Renault-Nissan alliance was arrested on financial crime charges. Ghosn’s arrest is rumored to have widened the rift between Renault and Nissan.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>Fiat Chrysler Automobiles (FCA) announced on May 27 that it has made a proposal to French automaker Renault for a… Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[54],"tags":[],"ppma_author":[2607],"class_list":{"0":"post-506","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"entry"},"acf":{"adrotate_specific_mobile_ad":"","adrotate_specific_desktop_ad":""},"yoast_head":"\nFiat Chrysler Confirms Merger Talks with Renault - In The Garage with CarParts.com<\/title>\n<meta name=\"description\" content=\"Fiat Chrysler has confirmed merger talks with Renault. 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