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(Reuters) – US-Italian automaker Fiat Chrysler has proposed to its French rival to merge all its shares as part of a new wave of consolidation of the auto sector.
FILE PHOTO: The logo of the car manufacturer FIAT is visible on a vehicle in Cairo, Egypt, on May 19, 2019. Photo taken on May 19, 2019. REUTERS / Mohamed Abd El Ghany / Photo
Together, they would have a combined market capitalization of more than 32 billion euros ($ 36 billion) and a total global business figure of 8.7 million vehicles. In comparison, the Volkswagen Group delivered 10.9 million vehicles in 2018.
With the partnership of Nissan, which already has a partnership with Renault, the alliance could become the largest car manufacturer in the world with an annual turnover of 13.8 million euros. This would also maintain a presence in China, where Fiat Chrysler and Renault are marginal players.
An agreement would be the fourth time in 20 years that the old Chrysler Corp of Detroit would have been transferred to new owners and the fifth time since 1987 that the Jeep sport utility vehicle brand has changed hands.
1987 – Chrysler, under the leadership of Lee Iacocca, agrees to buy Renault's 46% stake in American Jeep American Motors Corp. (AMC), then acquire 100% of AMC and begin developing the Jeep brand.
1998 – German automaker Daimler AG and Chrysler announce a "merger of equals", which will soon become an acquisition of Daimler. The blockbuster affair is starting to slow down.
2004 – Sergio Marchionne takes charge of Fiat.
2007 – Daimler CEO Dieter Zetsche, former head of the Chrysler unit, agrees to sell 80% of Chrysler to Cerberus Capital Management, a US financial investor. The transaction is complete even though Cerberus had to postpone the sale of a $ 12 billion syndicated loan after the investors withdrew.
2009 – Chrysler goes into bankruptcy restructuring and, in June 2009, Fiat takes control of the company, renamed Fiat Chrysler Automobiles NV (FCA).
January 2014 – Fiat, under the leadership of Marchionne, tightens its grip on Chrysler Group LLC by buying the 41.46% stake it does not yet hold in a $ 4.35 billion deal.
April 2015 – The French State increases its stake in Renault to 19.74%, against 15% in an agreement to block Nissan's efforts to increase its influence on Renault. The agreement is orchestrated by the Minister of Economy – and now the French President – Emmanuel Macron.
April 2015 – Marchionne publishes "Confessions of a Junkie Capital," a treatise on why consolidation is inevitable for the auto industry at a time of tighter emission regulations and global competition.
September 2015 – Marchionne sends an email to General Motors General Manager Mary Barra, asking her to explore a combination of the two automakers.
July 2018 – Fiat Chrysler reveals that Marchionne died as a result of a surgical operation. Marchionne's successor, Mike Manley, announces a sharp drop in his profits and his commitment to implement the 2022 strategy to make the FCA "strong and independent", while remaining flexible in terms of trading opportunities.
January 2019 – Renault states that Carlos Ghosn has resigned from his position as President and Chief Executive Officer while he faces a financial misconduct investigation.
March 2019 – Manley says Fiat Chrysler is open to seeking alliances and merger opportunities, adding that the FCA is not engaged in any merger negotiations.
May 2019 – Fiat Chrysler and Renault announce a merger proposal, with the shareholders of each company controlling 50% of the new entity.
Reportage of Joe White and Edward Taylor; Edited by Mark Potter
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