Renault need to think about the FCA proposal

Renault need to think about the FCA proposal

May 30, 2019 0 By autotimesnews

Fiat-Chrysler-Automobiles last Monday proposed a merger with the French manufacturer Renault. However, the final answer to this account may be given later. Renault takes time to make an informed decision.

On Tuesday, a meeting of the board of directors of Renault was held, convened specifically to discuss a merger proposal with FCA. However, the final decision was never made. The verdict states that the transaction will require “further study.”

The timing of the decision has not been determined. It is expected that further discussions will be held with representatives of Fiat-Chrysler-Automobiles.

FCA group of companies offers Renault to unite in a single new Dutch parent company, which will be equally controlled by FCA and Renault. According to FCA, the merger will lead to an annual synergistic effect in excess of 5 billion euros and access to markets previously inaccessible to both parties. The company can become the third largest car manufacturer in the world, with a total sales of about 8.7 million vehicles per year. In the case of a merger, none of the plants will be closed. It is expected that the necessary savings will be achieved by reducing the number of platforms, transmissions and the joint development of technology.

It is not yet known what the leadership of Nissan and Mitsubishi, who are Renault partners in the alliance, thinks about this. However, FCA decided to “sweeten the pill” by adding a place for a Nissan representative on the board of directors of the new company, but did not say anything about Mitsubishi.