[ad_1]
Fiat Chrysler is in advanced discussions to forge close ties with the French Renault as automakers seek to join forces to address the structural challenges facing the global auto industry, according to several people familiar with the discussions.
The deal could eventually lead the automaker to join the Renault-Nissan-Mitsubishi Alliance in the future, they added, while warning that this result would involve a complicated route that would imply victory over the Japanese Nissan.
Discussions focus on the potential for extensive cooperation between FCA and Renault, the alliance's main partner with Nissan, which seeks to secure a partnership future after the arrest of longtime leader, Carlos Ghosn, there has eight months in Tokyo. .
Discussions are under way and could still collapse, said these people, noting that a number of structures and options were under consideration. There is no guarantee that large-scale discussions will result in an agreement.
It is unclear to what extent the Japanese company Nissan has been involved so far in the discussion, said these people. One person said that Nissan had never participated in the talks before.
The talks take place before the meeting of the Board of Directors of the Japan Pressurized Group on Wednesday.
Renault and FCA refused to comment. A Nissan spokesperson did not respond to a request for comment.
In March, the Financial Times announced that Renault wanted to resume negotiations on the merger with Nissan within 12 months, then acquire another automaker, with Fiat Chrysler among its preferred targets.
FCA has already initiated discussions with Renault on sharing platforms, the manufacturing base on which a car is based, and is conducting similar discussions with the owner of Peugeot, PSA, in France. It is understood that the discussions with Renault go beyond the simple sharing of technology and progress faster than those with PSA.
FCA has already created a joint venture with PSA for the manufacture of light commercial vehicles and has a more limited relationship with Renault, a contract that manufactures vans for FCA in France.
Although headquartered in Europe, FCA has the core business, sales and earnings in North America, a region where Renault is not established.
It also includes premium brands Alfa Romeo and Maserati, a highly profitable segment of the market in which Renault does not compete.
FCA Executive Director Mike Manley had previously told FT: "If there is a partnership, a merger, a relationship that makes us stronger, then I'm quite willing to look at it."
If FCA was ever included in the Renault-Nissan-Mitsubishi alliance, it would reverse the balance of power within the organization, push further the center of the company away from Japan and bring the Italian family Agnelli, led by John Elkann.
The family, which founded Fiat in 1899 and holds 29.2% stake in its investment vehicle Exor, is willing to reduce its exposure to the auto industry, the Financial Times reported.
The future addition of FCA would also see the alliance become the largest automaker in the world, with 15.6 million combined sales a year, far ahead of the current leader, Volkswagen, which had sold 10.8 million last year .
The alliance was formed in 1999 between Renault and Nissan in order to combine their strengths to make the most of their scale without requiring a complete merger between the two companies.
Mitsubishi joined the alliance in 2016 after Nissan took a 34% stake in the company.
The current structure remains unbalanced: Renault holds 43% of Nissan shares and holds voting rights, while Nissan holds 15% of Renault shares.
Additional reports by Leo Lewis and Kana Inagaki in Tokyo
[ad_2]
Source link