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FCA and Renault to Resume Merger Talk

Written By, Brad R

The dialogue between FCA and Renault has slowly resumed after the initial planning to merch did not work out. These two global automotive giants would become the third largest automobile company in the world if an agreement can be reached. So, what caused the talks to resume after all? As it turns out, many are on board with this merger from the French government. Renault is partially owned by the French government and they were originally hesitant about the $35 billion dollar deal. As more time has passed and more discussions have been held, this massive deal may see the light of day after all.

Nissan Comes Aboard

Nissan, which holds 15% of Renault’s shares, has come forward to support the merger. The Japanese automaker would be able to continue to promote its brand and gain profits, however, they are aiming to be separate from the merger. This comes despite the addition of Jeep, Ram and the Dodge brand for Renault. FCA wants to improve its fuel efficiency within their vehicles with the hope of Renault’s knowledge of fuel efficiency. They are hoping to create many electric vehicles with help from Renault as best how to make their goals a reality. This move is a no brainer for all parties involved to continue to expand and get closer to becoming the top dog in the automotive industry. 

The Deal Is Still On the Table

FCA is hoping to see the resolution of this deal. Renault looked to patch up any tension with Nissan. Nissan holds a 15 percent share with Renault. Renault owns 43% of the Nissan brand. Even the French president had to comment on the deal recently speaking on behalf of his country, but hinting at the landmark Renault-Nissan and the forthcoming FCA deal that has yet to be signed and made official. 

"We created a giant which we must not only preserve but develop synergies and alliances to strengthen it in the face of international competition." -Emmanuel Macron, French President.

Next Steps To Take

The next steps will be done over the course of the summer, as both sides have conditions each side would like to be completed. Reports that have come out have said Renault officials are optimistic and an upcoming Nissan shareholders meeting will help them to discuss future plans with FCA. As for the name of the company, even when both sides had agreed on the deal originally (or so we thought), there was no official name given to the company as both sides with split an equal 50/50 share. 

Nissan has not rejected the chance of a future agreement but does want to reshape the agreement to allow them to be totally flexible and separate from each other. While only time will tell, the future of the automotive industry has yet to take shape with these brands. For the latest Jeep, Dodge or Ram, among many other brands, we have them at NowCar. We’re excited to help our customers out daily, at any time, 24/7. 

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