Fiat-Chrysler Wants Renault Merger

CBJ — Convergence continues in many industries and the automotive sector is no different.

Fiat Chrysler has proposed a merger with France’s Renault as a way to create the world’s third-biggest automaker, worth $40 billion.

The shared resources would also help in the intense race to develop electric and autonomous vehicles.

It’s projected that the merged company would produce  8.7 million vehicles a year, which would surpass General Motors and trailing only Volkswagen and Toyota.

Fiat Chrysler’s offer comes at a key moment for Renault. The French manufacturer had wanted to merge fully with Nissan, but those plans were derailed by the arrest of boss Carlos Ghosn on financial misconduct charges in Japan.

The proposed merger would be an equal partnership. However, mergers of equal entities can be challenging to manage over questions of who gets the top leadership positions and which brands are promoted and invested in most.