Fiat Chrysler Automobile and Renault are reportedly engaged in conversations that could result in large parts of their business being merged. This demonstrates the growing desire of car manufacturers to consolidate in an environment of increasing regulatory pressure and declining sales, and rising costs aimed at bringing next-generation technologies to market like self-driving cars.
Bloomberg, Financial Times and The Wall Street Journal reported talks about a merger that could lead to Fiat Chrysler eventually becoming part of the company's Renault-Nissan Motor Alliance. Currently, the deal does not include Nissan, according to Bloomberg.
FCA declined to comment.
Fiat Chrysler is best known in the US for the company behind the Jeep and Ram Trucks. The business is much bigger. Fiat, with a market value of $ 20 billion, is one of the oldest Italian companies and owns brands such as Alfa Romeo, Fiat, Lancia and Maserati .
Fiat joined Chrysler in 2009. The FCA Today it is known that the merger of the companies in 201
It is unclear what could happen between FCA and Renault . Some of these details might be announced on Monday when Renault's board meets.
What is the conclusion for Fiat Chrysler? The automaker, which also owns the auto parts business Mopar, has an unbalanced business. Almost a third of the workforce is in Europe. Most of the profits come from the North American market. Such a commitment could lead to significant cost savings in Europe.
These cost savings are useful when sales are declining – a fact that other automakers like GM and Ford are already preparing for. The company can potentially work together or share the cost of the costly drive to bring new technologies such as electrification and autonomous vehicles to market.
FCA, which operates 46 research and development centers, has invested in advanced driver assistance systems such as its Maserati brand highway assistance feature. However, it has also relied on partnerships such as those with Waymos self-propelled vehicle manufacturer Waymo .
Last year, the company announced an expanded partnership with Waymo, which will expand Waymos self-driving minibuses by 62,000 Chrysler Pacifica. Drive car fleet. The two companies are also working on ways to license Waymo's self-driving automotive technology to use the technology in cars for consumers.