There’s a big merger in the works. Fiat Chrysler Automobiles is proposing a  50/50 merger with Groupe Renault.  The changing landscape in the automotive industry seems to have led to this proposal.  FCA says the deal would allow the companies to save money by collaborating in areas such as connectivity, electrification and autonomous driving.  FCA points out Renault has a “decade of experience in EV technology”.

Joining forces would also save money by sharing global vehicle platforms, powertrains and technology. FCA says there would be no plant closures as a result of the proposed merger. 

An FCA-Renault combination would create the 3rd largest global OEM. FCA has a presence in North and Latin America.  Renault would bring access to Europe, Russia, Africa and the Middle East.  FCA says adding Nissan and Mitsubishi, which are already part of an alliance with Renault,  would be the largest global OEM alliance, selling more than 15 million vehicles a year.

Keep in mind, this is just a proposal.  The two companies would naturally have to negotiate.  The usual regulatory review is also part of the process.