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- An agreement would help automakers deal with the slowdown in consumer demand for new cars.
- Fiat Chrysler could also join the Renault-Nissan-Mitsubishi Alliance, which is questioning its future after the arrest and ouster of the Nissan president.
- Visit the Business Insider home page for more stories.
Fiat Chrysler is in advanced talks with Renault over an agreement that would consolidate much of their business, the Financial Times and the Wall Street Journal reported Saturday.
An agreement would allow carmakers to better face the challenges faced by automakers, including lower demand for new cars. There is no guarantee that an agreement will be reached, but if it succeeds, it will be quickly reunited, announced the WSJ.
Fiat Chrysler could eventually join the Renault-Nissan-Mitsubishi Alliance, created in 1999 while the automotive industry was experiencing a period of significant consolidation, according to the FT.
In addition to this merger, Renault is exploring options for the future of the alliance following the much – publicized arrest last year of Nissan chairman, Carlos Ghosn, and the his ouster following allegations of financial misconduct. The Japanese automaker said earlier in May that it was on track to record its lowest annual profit since 2008 after the upheavals.
The inclusion of Fiat Chrysler would make the alliance the largest car manufacturer in the world with 15.6 million sales combined last year, according to the FT.
The alliance will meet for a board meeting on Wednesday and its future should be part of the discussion topics.
Read the full story on the Financial Times.
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