FCA Renault

[poohbah]

Lots of noise today about a potential FCA merger with Renault and what that might mean for individual brands - with Maserati and Alfa being highlighted as key "problem" children.

[poohbah]

It's now official.


Fiat submits proposal for merger with Renault

May 27, 2019 1:59 AM ET|About: Fiat Chrysler Automobiles ... (FCAU)|By: Yoel Minkoff, SA News Editor


•Fiat Chrysler (NYSE:FCAU) has delivered a non-binding letter to the Renault (OTCPK:RNLSY) board proposing a combination of their respective businesses as a 50/50 merger.

•"The combined business would create the 3rd largest global OEM and sell approximately 8.7M vehicles annually," according to a press release.

•There would be no plant closures as a result of the tie-up and the deal should provide an opportunity to lead in the development of electric and autonomous vehicles

•Whether Fiat Chrysler ultimately joins the Nissan-Renault-Mitsubishi alliance remains unclear.

[Citroënbender]

Re the "problem children", easy - spin off Maserati as a competitor to the Mini brand or reinvent it like Citroën did with the "DS" marque - but as a lux/sports arm of Fiat, and just let Alfa die. 

[lombardi]

Might see Daniel Ricciardo Driving for PEPE le Poo Formula ONE , JE TEM Merda

[kaleuclint]

Thinking through this...

The Japanese brands are already in alliance and the key product for the Asia market.  Fiat and Renault would platform share, focused on Europe.  Jeep would remain global.  Alfa remains the 'sporty' brand and junior to Maserati.  Chrysler / Dodge / RAM remain North America-centric with some global exposure.  Fiat remains dominant in Latin America.  Dacia and Lada provide the 'value' brand. 

This makes more sense than anything involving PSA.  Another party in the Peugeot / Citroen / Opel space would be overkill.

[poohbah]

Agree that it could make a fair degree of sense, at least at first glance.

Renault currently has no presence in the US so it would help on that front, and I can't imagine Nissan and Mitsubishi would walk away from an alliance with an even bigger  group that would enable even bigger procurement savings.

Imagine a sports vehicle division that could offer a range that included the Alpine 110, Megane RS, GTR, Giulia QV, 4C Spider, and Gran Turismo (and maybe even bring back a new gen Evo?). Though I doubt they would all survive.

Plus it would cover every segment in the SUV market from cheap and cheerful to high end (Stelvio and Levant).

[aggie57]

I very much doubt they would relaunch Renault in the US, they have no vehicles that would drive sales volume.  More likely focus on the growing markets in Asia and share platforms to reduce R&D and manufacturing costs.

[Colin Edwards]

I'd love to be a fly on the wall during the "merger" "negotiations". 
Finding common ground in the middle with the socialist French on one side and the right wing Italians on the other will be absorbing entertainment!
If it works......good for the EU.  Another blow for Brexit?

[Colin Edwards]

"political conditions in France do not currently exist for such a combination to proceed successfully."

Code for too far left and too far right?

[poohbah]

Ironically though, because Nissan wouldn't guarantee support.

I suspect this may be revived - and this was a bit of brinkmanship. FCA saying bugger you then. Lets see if Les Bleus quietly request a further discussion.

[kartone]

Hyundai / Kia next!

[Citroënbender]

Nah, Ford to absorb Holden.

[poohbah]

You shit stirrer CB ...

Seriously though, PSA (Peugeot et al) are probably the more obvious owners of Holden, given they already own ex-GM Europe stuff like Opel (manufacturer of the "Aussie" ZB Commodore...)

I still reckon a FCA-Renault deal is a chance to proceed in the next few months, subject to some meaningful placatory gestures to Nissan (eg granting voting rights for their Renault shares). Even the Chardonnay Socialists in Paris seem to acknowledge that Renault will be "enterré dans la merde" within a couple of years unless something meaningful occurs at corporate level.

PS - here is latest newsflash:

Renault, Nissan rift appears to be worsening
Jun. 10, 2019 5:29 AM ET
By: Yoel Minkoff, SA News Editor

•Exposing the deepening strain between Renault (OTCPK:RNLSY) and Nissan (OTCPK:NSANY), the French carmaker has signaled it will block its Japanese alliance partner from adopting planned governance reforms unless the company gets a seat on new board committees.

•It comes amid reports that the revival of the collapsed Fiat Chrysler-Renault deal hinges on a reduced stake in Nissan.

•Meanwhile, Fiat (NYSE:FCAU) is joining forces with Amazon-backed driverless startup Aurora, a move that could align its strategy with Renault on innovations like EVs and self-driving cars if it's able to get the merger over the line.