Fiat Chrysler Automobiles announces planned merger with Groupe Renault

High-stakes European merger would create the world’s third largest automotive group behind Toyota and the Volkswagen Group

Fiat Chrysler Automobiles (FCA) and Groupe Renault (encompassing Renault, Dacia and Alpine) have announced plans for a merger that would create the world’s third largest automotive conglomerate behind the Volkswagen Group and Toyota.

Together, the two automotive giants are hoping to get a handle on the increasing costs many manufacturers are battling through in the European market due to fast changing legislation, and increasing pressure to incorporate widespread electrification.

Subscribe to evo magazine

evo is 21 and to celebrate, we're returning to 1998 prices! Subscribe now to SAVE 39% on the shop price and get evo for its original cover price of £3.00 an issue, plus get a FREE gift worth £25!

> Click here for more on PSA's buy out of Vauxhall/Opel

The deal has been ruminating behind closed doors between FCA’s recently appointed chairman John Elkann and his counterpart at Groupe Renault, Jean-Dominique Senard. Both are relatively new in their roles, taking over from industry giants like the late Sergio Marchionne and the recently embroiled Carlos Ghosn, and together plan to bring the two European manufacturing giants together.

Advertisement
Advertisement - Article continues below

No plant closures or job losses will be effected in the merger, a key deliverable as both companies are part-owned by their respective French and Italian governments. Instead the move will give each company stronger buying power, and shared development of new modular platforms, powertrains and electrification – an area in which FCA is particularly vulnerable.

Foundations of this merger only really came into focus over the last few weeks, with Renault officially surrendering its proposed merger with Nissan. The pair currently operate within their own partnership, yet remain two separate financial entities. But Nissan will still have a substantial voice in the merger thanks to its 15 per cent stake in the French company, something that is becoming more complicated as a consequence of the controversial detaining of the partnership’s ex-CEO Carlos Ghosn in Japan, and so hence his removal as Groupe Renault’s CEO.

Regardless of the politics, this merger is sure to improve the fortunes of FCA and Groupe Renault, both of which have been at the mercy of the stagnant European market in recent years. A merger might also herald some new thinking, and fresh investment behind iconic European brands on both sides that could benefit from shared development and components – but more importantly should safeguard both as the industry moves into an unknown and potentially unstable future.

Advertisement

Recommended

Visit/news/22984/why-the-old-reims-grand-prix-circuit-is-still-an-essential-visit
Renault

Why the old Reims Grand Prix circuit is still an essential visit

12 Aug 2019
Visit/renault/5/turbo
Renault

Renault 5 Turbo – review, history, prices and specs

29 Jul 2019
Visit/renault/22229/renault-turbo-history-on-show-at-r-tromobile
Renault

Renault Turbo history on show at Rétromobile

5 Feb 2019
Advertisement

Most Popular

Visit/mclaren/201626/2020-mclaren-elva-further-details-of-next-ultimate-series-supercar
McLaren

2020 McLaren Elva

No roof? No worries… The McLaren Elva will be the ultimate sun-seeking supercar
12 Dec 2019
Visit/news/22743/first-details-of-the-gordon-murray-automotive-t50-hypercar-revealed
News

Gordon Murray Automotive T.50 hypercar revealed

A true successor to the McLaren F1, Gordon Murray Automotive has revealed more about its spectacular T.50 hypercar
10 Dec 2019
Visit/evo-car-of-the-year/202042/ecoty-2019-evo-car-of-the-year-preview
evo Car of the Year

eCoty 2019: evo Car of the Year preview

Our annual evo Car of the Year test is coming, in print and online
13 Dec 2019
Visit/features/22907/hyundai-i30-fastback-n-versus-the-col-de-turini
Hyundai i30 N hatchback

Hyundai i30 Fastback N versus the Col de Turini

We take the Hyundai i30 Fastback N up the Col de Turini, a 31km stage of the Monte Carlo World Rally Championship
19 Jul 2019