Fiat Chrysler Withdraws Proposed Merger with Renault, an Industrial Info Market Brief
Fiat Chrysler Withdraws Proposed Merger with Renault, an Industrial Info Market Brief
Fiat Chrysler has withdrawn its proposal to merge with French automaker Renault--a deal that would have reshaped the global auto industry and helped the companies compete in the race for electric and self-driving vehicles. The company said Wednesday that it "has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully." The deal would have created the world's third largest carmaker behind Volkswagen and Toyota. General Motors would have fallen to fourth in the global ranking.
The proposal was the latest example of established automakers seeking partnerships to share the costs of developing new technologies, including electric vehicles and autonomous driving systems. Fiat Chrysler owns brands that include Jeep, Dodge, Alfa Romeo and Maserati. Among its top markets is North America, where Renault does not have a significant presence.
When it first made the merger proposal last month, Fiat Chrysler said a combination would produce annual cost savings of more than 5 billion euros ($5.6 billion). The company said no plants would be closed as a result of a merger.
Renault is already part of a major global alliance with Japanese automakers Nissan and Mitsubishi Motors. Renault and Nissan both own major stakes in one another.
Industrial Info is tracking 29 Renault and Fiat Chrysler plants in Latin America with 206 functional management contacts, as well as 114 projects of the companies, worth $6.55 billion. Click here for plants and here for projects.
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