Author : Tronserve | Wednesday, 29 May 2019
Fiat Chrysler Automobiles (FCA) has submitted a proposition for a merger with the Renault Group that would create the third largest automobile manufacturer in the world. According to the proposal, the recently formed group is going to be co-owned by FCA and Renault shareholders at a 50-50 split and feature a well balanced number of seats on the Board of Directors.
Fiat Chrysler, the group behind well known brands such as Jeep, Dodge, Ram and Alfa Romeo, was the seventh most sizeable automobile group in the world last year, selling 4.8 million vehicles in total. Adding Renault’s 3.88 million cars sold in 2018 to that total would create the third largest player in the industry led by Volkswagen and Toyota.
As reported by FCA’s proposal, the merger could result in synergies of more than €5 billion yearly, not predicating on plant closures. “Combining the businesses will bring together complementary strengths”, the proposal reads, referring to geographic and segment coverage as well as to FCA’s capabilities in autonomous driving and Renault’s expertise in accordance with electric vehicles. Renault’s Board of Directors is reserved to talk over the proposal on Monday, thereafter the company will issue a press release. Shareholders reacted positively to the news, with both companies’ shares up more than 10 percent in European trading on Monday.
This article is originally posted on MANUFACTURING.NET