Renault and Fiat to end cooperation ahead of FCA and PSA merger

Renault and Fiat to end cooperation ahead of FCA and PSA merger

October 23, 2020 0 By autotimesnews

Renault Group and Fiat Chrysler Automobiles end their commercial van business in anticipation of a merger between the two groups.

As part of a deal struck under former Renault CEO Carlos Gona, the French automaker was building the mid-size vans Fiat Talento (a redesigned version of the Renault Trafic) at its Sandouville plant in France.

Renault Deputy General Manager Clotilde Delbos said this Friday, October 23rd, that the contract expires and therefore Renault is looking for new partners.

Renault began producing the Talento with its own Trafic in Sandouville since the partnership was announced in 2016. The brand also builds the Nissan NV300 and Mitsubishi Express on the same production lines. Renault built around 15,000 Talentos at the plant in 2019.

One obstacle to unification remains – an EU investigation into sales of PSA and FCA light commercial vans in Europe. In some countries, the combined company could have a market share of more than 30%, including 45% in France and 48% in Italy.

As a reminder, PSA plans to complete the merger with FCA by the end of the first quarter of 2021.