Fiat Chrysler Automobiles (FCA) have sent a proposal to Renault S.A. suggesting a 50/50 merger. Renault’s Board of Directors held a meeting to explore the possibility of this joint venture.
The latest news is that Renault are actively considering the offer and exploring its long-term benefits. If the alliance goes through, Renault and the Italian-American company will become the world’s third-largest car manufacturers; right behind Toyota and Volkswagen.
This news has raised concerns in the Nissan boardroom as well because it may put their current relationship with the French car manufacturer in jeopardy. However, FCA have also mentioned that they would like to have Nissan and Mitsubishi Motors on board as well. Furthermore, the French government has also said that it would like Nissan to be on board. Perhaps, because of Nissan’s impressive technology that meets the tough Chinese emissions. Sources close to Renault-Nissan say that Nissan have been reluctant for a full merger in the past. Could this work in favour of the FCA-Renault merger? We will bring you an update as soon as we get it.
Story: Joshua Varghese
