Jump to content
  • Drew Dowdell
    Drew Dowdell

    FCA Sends Merger Proposal to Renault

      ...50/50 proposal is being reviewed by Renault's board of directors...

    FCA has sent a merger proposal to Renault in what would start as an operational tie-up leading to a full merger. The proposal is a 50/50 deal that will not involve Nissan or Mitsubishi and it estimated to be worth around $33 billion. Few details have been revealed, however, Renault's board said it would issue a press release after the meeting. Rumor has it that Renault is negotiating with FCA without the approval from Nissan or Mitsubishi.

    If the merger does go through, it would happen over the next 12 months and the combined companies would rank 3rd in the world in terms of production, just behind Toyota and Volkswagen.  One complication to the deal is the French government's 15% stake in Renault. FCA has offered a guarantee to keep existing production locations but left the door open for white-collar job cuts. 

    This comes after FCA turned down a merger proposal from PSA back in March of this year. 

    Source: NY Times



    User Feedback

    Recommended Comments

    More and more auto companies will merge.  I’d say this is a done deal and others will follow.

    Share this comment


    Link to comment
    Share on other sites

    This story has been bubbling up since Saturday when the Financial Times broke the story and has since been a countless stack of rumors.

    I have to wonder if Renault is looking to use this possible alliance as a way to reduce Nissan's bargaining power. It is no secret that Nissan has been rebuffing Renault's effort to try and bring the two companies closer together - Nissan is the larger of the two, but Renault holds most of the power.

    Or it could be seen as a possible fallback if the alliance between Renault/Nissan/Mitsubishi falters (a long shot, but one I wouldn't discount).

    Share this comment


    Link to comment
    Share on other sites
    4 hours ago, William Maley said:

    This story has been bubbling up since Saturday when the Financial Times broke the story and has since been a countless stack of rumors.

    I have to wonder if Renault is looking to use this possible alliance as a way to reduce Nissan's bargaining power. It is no secret that Nissan has been rebuffing Renault's effort to try and bring the two companies closer together - Nissan is the larger of the two, but Renault holds most of the power.

    Or it could be seen as a possible fallback if the alliance between Renault/Nissan/Mitsubishi falters (a long shot, but one I wouldn't discount).

    It's not by accident that the savings FCA says will come from the deal are almost exactly equal to the savings Renault gets from the alliance.

    Share this comment


    Link to comment
    Share on other sites

    Interesting..  Renault has EVs, compact and subcompact cars, and MPVs that could benefit FCA... FCA has Jeep and Ram and access to the NA market for Renault.   Going to be interesting to see what transpires..

    :deathwatch:

    • Upvote 2

    Share this comment


    Link to comment
    Share on other sites
    47 minutes ago, ocnblu said:

    1986 Renault Alliance Magazine Advertisement - Car.jpg

    Imagine the possibilities for such a merger.  Could have a new Renault Alliance based off the Megane for Dodge dealers. 

    • Haha 1

    Share this comment


    Link to comment
    Share on other sites

    Somebody is going to have to cut production somewhere.  If FCA joins Renault, the French government will foolishly protect French workers instead of shutter the more inefficient ones.  Then again, it may require a depression to radically simplify the automotive industry.

    Share this comment


    Link to comment
    Share on other sites
    1 hour ago, Robert Hall said:

    Interesting..  Renault has EVs, compact and subcompact cars, and MPVs that could benefit FCA... FCA has Jeep and Ram and access to the NA market for Renault.   Going to be interesting to see what transpires..

    :deathwatch:

    I think with a shift coming in the market, this might be a smart move. A company that can cover all the bases combined.....

    Share this comment


    Link to comment
    Share on other sites

    Renault has a pretty full line.  They won't need Fiat, as Renault has small cars and small SUVs and commercial vans that they can co-develop the next generation Ram vans with Renault and sell those with different badges.  Jeeps lets Renault strengthen their SUV line up if they need it.  Dodge could be come the American version of Renault.  Lot of possibilities here to merge the lineups and stream line it all.

    Share this comment


    Link to comment
    Share on other sites
    2 hours ago, riviera74 said:

    Somebody is going to have to cut production somewhere.  If FCA joins Renault, the French government will foolishly protect French workers instead of shutter the more inefficient ones.  Then again, it may require a depression to radically simplify the automotive industry.

    Best thing that could happen is for them to merge, global recession hit and they can then finally close all the inefficient factories and the French workers will revolt and hell will happen on earth! :P 

    Share this comment


    Link to comment
    Share on other sites

    The Renault Master and Ram ProMaster could be merged into a single product.
    The Kangoo could become a ProMaster City.

    Fiat the brand could be saved by platform sharing with some of Renault's small cars.

    Dodge and Chrysler could be saved with Renault's mid-range vehicles. 

    The issue will be Nissan's reaction.  But Renault owns 45% of Nissan, so they might not have much say.  I wonder if this would also give FCA a controlling interest in Nissan or if Renault would divest themselves first. 

    New name.... FCAR?

    • Like 1
    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    Well, I hope this latest try works for them in the long run.  I had to post the Alliance, it seems ironic, almost like a soap opera, that Chrysler and Renault might be walking down the aisle... again, after their divorce so many years ago.

    • Like 1

    Share this comment


    Link to comment
    Share on other sites

    Fiat + Nissan 

    Can you imagine the bland and shtty vehicles to come from that corporation? 

    • Haha 1

    Share this comment


    Link to comment
    Share on other sites

    Nissan's blandness, or at least the lion's share of it, rests squarely on their ridic reliance on the worst mechanical idear in recent automotive history:  THE CVT.

    Plus, having first hand experience owning a FIAT-influenced Chrysler product, I'm not sure I like your tone, mister.

    • Haha 2

    Share this comment


    Link to comment
    Share on other sites

    Hmm... one can imagine some interesting synergies from such an alliance...Hellcat Maxima and Hellcat GT-R.   But seriously, I'd love to see FCA's inline 6 plan come to fruition and maybe see it in a new small Z car and a new generation of GT-R...Nissan has a great performance history, but they seem to have largely ignored it and let the Z and GT-R age while focusing on appliances.   I could see Nissan evolving their full size trucks to be Ram variants (which was proposed a decade or so ago?)... 

    • Like 1

    Share this comment


    Link to comment
    Share on other sites

    I think Nissan (and Toyota) should give up on full size trucks and concentrate on what made them popular in the past... mini trucks.  It is intriguing to think of a Ram midsize with Pentastar or the new inline 6 in a Nissan-shared midsize though.

    • Like 1
    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By Drew Dowdell
      FCA Reports June 2019 U.S. Sales
       
      FCA US reports best June retail sales in 18 years; best total sales in 14 years Ram pickup trucks notch record as sales jump 56 percent to 68,098 vehicles sold Jeep® Gladiator captures an estimated 7 percent of the mid-sized truck market in its first full month in dealerships Dodge Charger posts highest June sales in 12 years FCA ends monthly sales reporting; first quarterly report to occur Oct. 1 July 2, 2019 , Auburn Hills, Mich. - FCA US LLC reported its best June in 14 years as total sales climbed 2 percent to 206,083 vehicles, driven by Ram pickup trucks which had its highest month of sales since the brand was detached from Dodge and launched as a standalone division in 2009.  

      Sales of Ram pickups for June rose 56 percent to 68,098 vehicles. For the quarter, Ram pickup truck sales finished at 179,454 vehicles.

      Jeep® Gladiator sales reached 4,231 vehicles sold, which helped the nameplate capture an estimated 7 percent of the mid-sized truck market after only one full month on dealership lots.

      The Dodge Charger also reached its highest level since 2007 with sales of 9,034 vehicles.

      Overall, June retail sales for FCA US hit the highest level in 18 years with 156,588 vehicles sold. Fleet sales totaled 49,495 vehicles and accounted for 24 percent of total sales.  

      "For the first-half of 2019, Ram has been on a tear since we made the strategic decision to enter the year with a three-truck strategy. The new Ram 1500, Ram Classic and Heavy Duty are all generating a huge response from customers and critics alike,” Head of U.S. Sales Reid Bigland said. “This is now the third month Ram pickup sales have surpassed 60,000 since December. Our dealers had a steady stream of customers all month long.”

      June results also mark the end of monthly sales reporting by FCA US LLC. The first quarterly sales report will occur on Oct. 1, covering the months of July, August and September.

      See the attached table for the breakdown of brand and nameplate sales. FCA US LLC Sales Summary June 2019
      Model
      Month Sales
      Vol %
      Change
      CYTD Sales
      Curr Yr              Pr Yr
      Vol %
      Change
      Curr Yr
      Pr Yr
      Compass
      10,976
      15,142
      -28%
      75,513
      87,510
      -14%
      Patriot
      1
      47
      -98%
      13
      549
      -98%
      Wrangler
      20,055
      23,110
      -13%
      116,985
      133,492
      -12%
      Gladiator
      4,231
      0
      New
      7,252
      0
      New
      Cherokee
      15,826
      22,433
      -29%
      97,210
      113,719
      -15%
      Grand Cherokee
      19,660
      17,724
      11%
      123,272
      109,313
      13%
      Renegade
      6,077
      8,533
      -29%
      36,036
      50,439
      -29%
      JEEP BRAND
      76,826
      86,989
      -12%
      456,281
      495,022
      -8%
      Ram P/U
      68,098
      43,542
      56%
      299,480
      233,539
      28%
      ProMaster Van
      5,937
      6,996
      -15%
      26,712
      20,362
      31%
      ProMaster City
      1,192
      1,191
      0%
      6,976
      6,440
      8%
      RAM BRAND
      75,227
      51,729
      45%
      333,168
      260,341
      28%
      200
      0
      52
      -100%
      35
      894
      -96%
      300
      2,904
      4,318
      -33%
      15,857
      24,707
      -36%
      Town & Country
      0
      0
       
      3
      5
      -40%
      Pacifica
      10,037
      9,114
      10%
      48,527
      63,024
      -23%
      CHRYSLER BRAND
      12,941
      13,484
      -4%
      64,422
      88,630
      -27%
      Dart
      0
      27
      -100%
      10
      334
      -97%
      Avenger
      0
      1
      -100%
      1
      3
      -67%
      Charger
      9,034
      6,640
      36%
      45,046
      41,406
      9%
      Challenger
      5,067
      6,822
      -26%
      28,668
      37,367
      -23%
      Viper
      3
      0
       
      5
      14
      -64%
      Journey
      6,704
      11,286
      -41%
      45,431
      52,309
      -13%
      Caravan
      12,215
      16,267
      -25%
      71,947
      86,778
      -17%
      Durango
      5,538
      5,344
      4%
      36,991
      32,722
      13%
      DODGE BRAND
      38,561
      46,387
      -17%
      228,099
      250,933
      -9%
      500
      306
      354
      -14%
      1,692
      2,262
      -25%
      500L
      90
      157
      -43%
      399
      904
      -56%
      500X
      200
      514
      -61%
      1,484
      3,225
      -54%
      Spider
      337
      401
      -16%
      1,528
      1,894
      -19%
      FIAT BRAND
      933
      1,426
      -35%
      5,103
      8,285
      -38%
      Giulia
      768
      979
      -22%
      4,346
      6,362
      -32%
      Alfa 4C
      9
      39
      -77%
      91
      134
      -32%
      Stelvio
      818
      1,231
      -34%
      4,600
      5,769
      -20%
      ALFA ROMEO
      1,595
      2,249
      -29%
      9,037
      12,265
      -26%
      FCA US LLC
      206,083
      202,264
      2%
      1,096,110
      1,115,476
      -2%
       
         
    • By William Maley
      Fiat Chrysler Automobiles has been lagging behind other automakers in terms of electrification, tending to focus more on how many more vehicles they drop the Hellcat V8 into. But that appears to be changing.
      The Detroit Bureau had the chance to speak with FCA's new global powertrain chief, Micky Bly. He said that within the next twelve to eighteen months, FCA would try to reposition itself as one of the industry’s leaders in electrification.
      “We’re not leaders now,” said Bly, “but we will be soon.”
      Bly wouldn't go into detail as to how FCA plans to do this. But we already know that a number of FCA brands have plans for hybrid and electric vehicles - including a new Fiat 500e. Sources also revealed that there is the possibility of the Hellcat V8 being teamed with a mild-hybrid setup that could add 130 pound-feet, and only add around 100 pounds to the overall curb weight. There is also the possibility of a production version of the Chrysler Portal concept, going with a full electric powertrain.
      Source: The Detroit Bureau

      View full article
    • By William Maley
      Fiat Chrysler Automobiles has been lagging behind other automakers in terms of electrification, tending to focus more on how many more vehicles they drop the Hellcat V8 into. But that appears to be changing.
      The Detroit Bureau had the chance to speak with FCA's new global powertrain chief, Micky Bly. He said that within the next twelve to eighteen months, FCA would try to reposition itself as one of the industry’s leaders in electrification.
      “We’re not leaders now,” said Bly, “but we will be soon.”
      Bly wouldn't go into detail as to how FCA plans to do this. But we already know that a number of FCA brands have plans for hybrid and electric vehicles - including a new Fiat 500e. Sources also revealed that there is the possibility of the Hellcat V8 being teamed with a mild-hybrid setup that could add 130 pound-feet, and only add around 100 pounds to the overall curb weight. There is also the possibility of a production version of the Chrysler Portal concept, going with a full electric powertrain.
      Source: The Detroit Bureau
    • By Drew Dowdell
      At FCA, amid the backdrop of a proposed merger and its subsequent collapse,  a lawsuit has been filed by Reid Bigland, head of the RAM brand and CEO of FCA Canada alleging that FCA has retaliated against Bigland for cooperating in a Federal prob of FCA's sales reporting process. 
      Bigland joined Chrysler in 2006 and in turn took over the reigns of Alfa Romeo, Maserati, and Dodge, eventually serving as CEO of FCA Canada.  The lawsuit filed Wednesday accuses FCA of retaliation for not taking the fall for the sales reporting prob.  Bigland claims his compensation has fallen by more than 90% and that the sales reporting process under scrutiny was one that he inherited. 
      The probe of FCA's sales reporting started after two dealerships in Illinois filed a lawsuit alleging they were offered cash in return for reporting falsely inflated sales numbers. From that lawsuit, FCA was forced to recount and re-report its previous sales reports.  The Security and Exchange Commission continued its investigation and Bigland cooperated. 
      Bigland's position is that the sales reporting methods existed well before he assumed his roles, and he did nothing to change the reporting process already in place.  Bigland claims that the SEC tried to settle with some admission of wrong-doing by the company and Bigland. Bigland declined to admit wrong doing and later sent a letter detailing the sales reporting practices to the SEC.
      Bigland sold his shares in the company in 2018 and he claims that FCA is withholding bonuses to pay for SEC fines if and when they come. 
      For FCA's part they say via Detroit News:
      We'll have more information as it comes out. 

      View full article
    • By Drew Dowdell
      At FCA, amid the backdrop of a proposed merger and its subsequent collapse,  a lawsuit has been filed by Reid Bigland, head of the RAM brand and CEO of FCA Canada alleging that FCA has retaliated against Bigland for cooperating in a Federal prob of FCA's sales reporting process. 
      Bigland joined Chrysler in 2006 and in turn took over the reigns of Alfa Romeo, Maserati, and Dodge, eventually serving as CEO of FCA Canada.  The lawsuit filed Wednesday accuses FCA of retaliation for not taking the fall for the sales reporting prob.  Bigland claims his compensation has fallen by more than 90% and that the sales reporting process under scrutiny was one that he inherited. 
      The probe of FCA's sales reporting started after two dealerships in Illinois filed a lawsuit alleging they were offered cash in return for reporting falsely inflated sales numbers. From that lawsuit, FCA was forced to recount and re-report its previous sales reports.  The Security and Exchange Commission continued its investigation and Bigland cooperated. 
      Bigland's position is that the sales reporting methods existed well before he assumed his roles, and he did nothing to change the reporting process already in place.  Bigland claims that the SEC tried to settle with some admission of wrong-doing by the company and Bigland. Bigland declined to admit wrong doing and later sent a letter detailing the sales reporting practices to the SEC.
      Bigland sold his shares in the company in 2018 and he claims that FCA is withholding bonuses to pay for SEC fines if and when they come. 
      For FCA's part they say via Detroit News:
      We'll have more information as it comes out. 
  • Social Stream

  • Today's Birthdays

    1. Fomonper
      Fomonper
      (39 years old)
    2. Stormin
      Stormin
      (68 years old)
  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...