Fiat Chrysler submits merger proposal with Renault
The Italian-American automaker, Fiat Chrysler Automobiles (FCA), has proposed a merger between itself and the French vehicle manufacturer, Groupe Renault.
The company submitted its proposal, which will see the combined entity own 50% by FCA’s shareholders and 50% by Renault’s shareholders, to Renault’s Board on 27 May.
The combined business would form the third largest original equipment manufacturer (OEM) in the world.
The merged company would have annual vehicles sales of 8.7mn, and would be a global leader in EV technologies.
The firm would also have a broad portfolio, ranging from mainstream to luxury vehicles.
“These discussions made clear that broader collaboration through a combination would substantially improve capital efficiency and the speed of product development,” stated a FCA press release.
“The case for combination is also strengthened by the need 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 combined entity would initially have a Board of 11 members – the majority would be independent.
FCA has proposed that under the potential agreement, no plants would be closed following a merger.
Like what you see! Signup for our weekly newsletter