Fiat Chrysler confirms Renault merger proposal

Fiat Chrysler Automobiles has officially proposed a 50/50 merger with the Board of Groupe Renault.

The news comes after the two companies met earlier this year “to identify products and geographies where they could collaborate, particularly as they develop and commercialize new technologies”.

The US$35 billion merger is being handles by Goldman Sachs International and FCA says the reformed business aims to take “bold decisions to capture at scale the opportunities created by the transformation of the auto industry in areas like connectivity, electrification and autonomous driving.”

The FCA-Renault alliance would make it the third largest in the world, behind Toyota and Volkswagen Group.

FCA says in a statement the new combined board would initially be comprised of 11 members, with the majority being independent and with equal representation of four members each for both FCA and Groupe Renault, as well as one nominee from Nissan.

The combined FCA-Renault business would sell approximately 8.7 million vehicles globally every year and, accoring to FCA, “would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis.”

The automotive behemoth would result in a brand portfolio with full market coverage in all key segments from premium brands Maserati and Alfa Romeo, affordable brands of Dacia and Lada, plus Fiat, Renault, Jeep and Ram brands as well as commercial vehicles.

Groupe Renault has a strong presence across Europe, Russia, Africa and Middle East, plus FCA’s “Detroit big-three” position in North America, and Latin America. FCA also has autonomous driving partnerships with Waymo, BMW and Aptiv, while Groupe Renault has a decade of EV technology as the highest selling EV OEM in Europe.