There have been reports in the media about a possible merger between the Italian automobile company Fiat Chrysler Automobiles (FCA) and the French automaker Renault.
FCA and Renault are in talks on a comprehensive global alliance that would enable both automakers to meet the challenges facing the industry, Reuters reported on Saturday.
According to The Financial Times (FT) sources, the talks are already at an "advanced stage". Back in March, the FT reported that Renault plans to begin merger talks with Nissan within a year, after which it may well acquire Fiat Chrysler.
Fiat Chrysler CEO Mike Manley previously told the FT he was "absolutely open" to a partnership, merger or relationship that would make the company stronger.
The combined market capitalization of FCA and Renault is approaching 33 billion euros, with total global sales of 8,7 million vehicles. In addition to scaling up, a merger could help address existing weaknesses on both sides.
FCA owns a highly profitable North American truck business and the Jeep brand, but is losing money in Europe, where it could also cope with ever-increasing limits on carbon emissions.
Renault, by contrast, as a pioneer in electric vehicles and with the technology to produce relatively fuel-efficient engines, has a significant presence in emerging markets but little business in the US.
Source: 3dnews.ru