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Fiat Chrysler Automobiles and Renault would be in talks that could result in the merger of large parts of their businesses, an initiative that illustrates the growing desire of automakers to consolidate in an environment of increased regulatory pressure, declining sales and rising costs. intended to integrate new generation technologies such as self-driving cars to the market.
Bloomberg, the Financial Times and the Wall Street Journal have announced talks on an agreement that could lead to Fiat Chrysler eventually becoming part of the Renault-Nissan Motor Alliance. For the moment, the contract does not include Nissan, according to Bloomberg.
FCA refused to comment.
Fiat Chrysler is best known in the United States for the company behind the Jeep. and Ram trucks. His business is much bigger. Fiat, which has a market value of $ 20 billion, is also one of the oldest Italian companies and owns brands such as Alfa Romeo, Fiat, Lancia and Maserati. .
Fiat acquired a stake in Chrysler in 2009. FCA employees, employing nearly 200,000 people, were created when the companies merged in 2014.
We do not know what agreement between FCA and Renault could result. Some of these details could appear as early as Monday, when the Renault Board of Directors will meet.
What is the result for Fiat Chrysler? The automaker, which also owns the Mopar auto parts business, has unbalanced activities. Nearly a third of its employees are in Europe. And yet, most of its profits come from the North American market. Such an association could generate considerable cost savings in Europe.
These cost savings will be helpful in the event of declining sales – a reality that other automakers like GM and Ford are already preparing for. And this allows the company to potentially collaborate or share the costs of the expensive task of commercializing new technologies such as electrification and autonomous vehicles.
FCA, which operates 46 research and development centers, has invested in state-of-the-art driver assistance systems, such as its roadside assistance function under its Maserati brand. But it has also relied on partnerships such as the one with the carmaker Waymo .
Last year, the company announced an expanded partnership with Waymo, which will add an additional 62,000 Chrysler Pacifica minivans to the Waymo self-drive fleet. The two companies are also working on ways to license Waymo's autonomous car technology to deploy technology in cars for consumers.
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