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Renault and Fiat Chrysler discuss a merger

If the information becomes reality, it would be an unprecedented revolution in the world of the automobile. But, for now, the reconciliation announced between the French manufacturer Renault and the Italian-American group Fiat Chrysler, integrating the alliance already formed with the Japanese Nissan and Mitsubishi, exists only on paper.

The hypothesis is however to be taken seriously since it was mentioned, Saturday, May 25, at the same time by the two economic dailies of reference, the Financial Times and the Wall Street Journal. Information resumed, Sunday, May 26, by Agence France-Presse (AFP) which mentions three anonymous sources presented as close to the file that confirm the existence of a "Alliance project", in the form of a "Capitalistic rapprochement", even a "Fusion".

Advanced discussions

Renault and Fiat Chrysler lead "Advanced discussions" to establish "Close links", says the Financial Times on its website, however, stating that the outcome remains uncertain in view of number of options and structures under study ".

Carlos Ghosn arrested, Renault Nissan alliance is under severe strain

The Wall Street Journal did, he, state of talks on "A large-scale rapprochement that could lead the two builders to join large parts of their activities. "

For the moment, neither Renault nor Fiat Chrysler wished to comment on this information. But the absence of denial tends to confirm that discussions have indeed been initiated. It remains to know what they are wearing exactly and what they could achieve.

According to Financial Times, one of the options discussed would lead to integrate Fiat Chrysler in the alliance formed between Renault, Nissan and Mitsubishi. Such a scenario would make the new entity the undisputed number of the automobile.

With its Japanese allies, Renault is already the world's largest automotive group in terms of vehicles sold – nearly 11 million units sold last year. Adding those of Fiat Chrysler, rivals Toyota (10.59 million units) and Volkswagen (10.6 million) would be clearly behind.

Turbulence zones

But the negotiations could also lead to a more limited industrial partnership whose main objective, for Renault, to prevent a possible rapprochement of Fiat Chrysler and the French PSA, but also to be able to put a foot on the US market.

"Fiat-Chrysler could be a good deal for PSA"

These discussions take place at a time when relations between Renault and Nissan, already undermined after the arrest in Japan of Carlos Ghosn, former leader of the alliance, are still strained after the French reopened in April, the file of a merger that does not want the Japanese.

For its part, Fiat Chrysler is also experiencing an area of ​​turmoil since the sudden death, last year, of its historical leader, Sergio Marchionne, and his replacement by Mike Manley. In Milan, in May, during the presentation of the first quarter results of his group, he had clearly stated his desire to seek new partnerships and alliances.

According to the sources quoted by AFP, we should see a little more clearly in these big maneuvers very quickly. "An announcement is preparing in the next hours, maybe as early as Monday morning before the opening of the stock market"says one of them.

. (TagsToTranslate) Renault (t) car (t) Business (t) approximation (t) discuss (t) Chrysler

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