Fiat Chrysler Automobiles and the French automaker Renault witnessed the collapse of their merger Wednesday (Thursday in Paris) about a week and a half after its announcement on May 27.

It's like staying at the altar after standing up. Even though the marriage seems to be broken, the reasons that led to the talks have not changed, so there could be more news to come.

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The failure of Fiat Chrysler's merger talks with Renault raises some questions. (Photo: Kimberly P. Mitchell, Detroit Free Press)

What's next for FCA?

It depends if it's really the end of the discussions. Renault said it was delaying the vote after two days of board discussions on FCA's proposal to merge to 50/50. FCA almost immediately announced that it was withdrawing the offer.

Michelle Krebs, an analyst at Autotrader at Cox Automotive, was skeptical. "I have a hard time believing that the FCA and CFA President John Elkann, in particular, have not read the political tea leaves before, so I wonder if that's so." really complete story and if it's something that can be overcome, "she says.

Erik Gordon, a law professor at the Ross School of Business at the University of Michigan, said he would not be surprised that they are retrying, suggesting that this could be a trading ploy. In a letter to employees, however, Elkann indicated that it had become clear that the discussions had been conducted as far as possible.

Why did the discussions collapse?

The details are not always clear, FCA and Renault thanking various parties after the fact.

FCA spoke of "political conditions" in France. The French government holds a stake in Renault and obviously wanted to maintain a significant influence in the new entity.

French and Italian politicians and unions also wanted job guarantees and might not be satisfied with FCA's assurance that the deal would not require plant closures.

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There was also Nissan, Renault's partner, who was clearly concerned about the effect of this deal on the case. Nissan CEO Hiroto Saikawa said a complete merger "would require a fundamental overhaul" of the relationship between Nissan and Renault.

With Jeep and Ram, why associate with Renault?

Jeep is one of the most powerful automotive brands in the world, and the Ram Trucks brand is about to be lost in the United States.

However, the automotive industry is under pressure to develop an electric and autonomous technology. This technology is expensive and it is unclear how long it will take the car manufacturer or other players – tech companies and scathing – to make it a sustainable business.

FCA has partnered with Waymo and BMW / Intel / Mobileye to develop autonomous vehicles, but despite the notoriety of its Pacifica Hybrid minivan and its Wrangler plug-in projects, the company's efforts in the field of electric vehicles are the train. The late CEO of FCA, Sergio Marchionne, was in the habit of saying that he was losing money on every Fiat 500e sold.

Thanks to its partnership with Nissan, Renault is much more ahead of electric vehicles, which will play a key role in Europe and China (although neither company is a leader in the sales market). ).

More: FCA withdraws merger offer and Renault's Board of Directors postpones decision

More: FCA President explains decision to end discussions with Renault

More: Fiat Chrysler merging speculation heats up – but what's up?

Constant discussion on the FCA merger

If you follow the news of the automotive industry, the name FCA regularly appears as a candidate for the merger or acquisition. Marchionne set the tone in 2015 with his presentation titled "Confessions of a Junkie Capital," devoted to the benefits of consolidating the sector.

Marchionne was known for his efforts to interest GM at FCA, but while he was running the company, other names also appeared as possibilities: Volkswagen, Hyundai, Chinese automakers parade.

Earlier this year, the PSA group, which owns Peugeot and Opel, was in discussion with FCA. In terms of available places, Krebs suggested a South Korean builder. It could mean that Hyundai is back in the game.

Can FCA survive alone?

Although it is often said that the FCA needs a partner, many analysts believe that the company has an autonomous future.

Rebecca Lindland, an industry expert who writes on rebeccadrives.com, said FCA could help itself with Jeep, which is worth more than all of its other brands combined. She said that the necessary investments "in autonomous vehicles, electric vehicles and mobility as a service will be brought together through partnerships and alliances, but not by a full merger. (However) a complete merger with Renault. "

Charlie Chesbrough, senior economist at Cox Automotive, said that "Chrysler, in all its forms, has been dying for 40 years – history suggests that they always find something to solve. Maybe this time the solution will be streamlined and not expanded. "

Contact Eric D. Lawrence: (313) 223-4272 or [email protected]. Follow him on Twitter: @_ericdlawrence.

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