Speculation that Renault and Fiat Chrysler Automobiles will finally decide to merge reignited earlier this month, but the biggest obstacles remain in place
Speculation Renault and Fiat Chrysler Automobiles will finally decide to merge reignited earlier this month, but the biggest obstacles, French government interference and company’s relationship with its alliance partner Nissan of Japan, remain in place, while a possible rival deal with PSA Group still has its supporters.
Renault took control of an ailing Nissan in 1999, and the Japanese company now wants a more equal relationship. That means concessions from the French government. Since the removal of former CEO Carlos Ghosn late last year, who wanted a more formal merger with Nissan, the future of the alliance has been in question. Nissan owns a 15% non voting stake in Renault while the French company controls 43% of Nissan.
Dudenhoeffer also said it was likely PSA Group, which was originally favored to merge with FCA, was probably probing the possibilities of a deal in the background.“If Renault and Nissan come to an agreeable solution on the shareholder structure, this could be the catalyst for renewed talks with FCA. Renault has not been shy about their appetite for such a deal, but it first needed to ensure that Nissan was on its side.
“FCA has an incomplete range of models, some of which might have an uncertain future. The Chrysler, Dodge, Lancia and Alfa-Romeo brands are under threat, Fiat exists only through the 500 range, its SUVs and its South American market. Only Jeeps and Rams are sold in large quantities.
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