A potential merger between Fiat Chrysler Automobiles NV and French automaker Renault SA — is the latest move by a Detroit carmaker to reposition itself for the future.
In a bid to save some $5.6 billion (5 billion euros) annually through efficiencies in manufacturing, purchasing and R&D, Fiat Chrysler on Monday presented Renault’s board of directors with a 50-50 merger proposal. FCA is proposing a new company with a new management structure that would be 50% owned by the Italian-American automaker and 50% owned by France’s Renault.
“This is happening at a time when the industry is coming off peak car sales, and we are on the verge of transformation of the global auto industry,” said Michelle Krebs, an industry analyst with Cox Automotive. “Automakers are reckoning with how EVs, AVs and mobility will change how people acquire transportation. Those changes will cost a lot of money and nobody knows when payback will come.”
Read the article at The Detroit News