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Fiat Chrysler proposes merger with Renault to become third biggest carmaker in world
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Fiat Chrysler has proposed a merger with Renault that would create the third biggest carmaker in the world behind Volkswagen and Toyota.
The tie-up is aimed at saving billions of dollars for both companies as the car industry moves towards electric and autonomous vehicles.
In a statement on Monday, Italian-American firm Fiat Chrysler Automobiles (FCA) said the merged company would be 50 per cent owned by FCA shareholders and 50 per cent by Renault shareholders.

[Image: fiat-renault-Z9-IH-cover.jpg]


The proposal indicated that Renault’s existing alliance with Japan’s Nissan and Mitsubishi – a looser arrangement than a merger or acquisition, which allows the firms to benefit from economies of scale while maintaining separate corporate structures  – would continue.
The 20-year alliance has come under strain recently due to the arrest of its former chair Carlos Ghosn on financial misconduct charges in Japan.
French company Renault would not comment on the Fiat Chrysler proposal until after a special meeting of its board on Monday morning to discuss the idea.

The merged company would produce 8.7 million vehicles annually and save €5bn (£4.4bn) for the companies each year by sharing research, purchasing and other activities, the FCA statement said.


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