Proposed Merger Between FCA and Renault is Off
FCA announced that the political climate was not right for the proposed merger with the Nissan automaker.
Fiat Chrysler Automobiles (FCA), the automaker behind Dodge, has announced that their proposed merger with Groupe Renault is now withdrawn. The merger would have made FCA/Renault the third largest global automaker. The executive board under the Chairmanship of John Elkann, met this evening and released a statement thereafter.
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” read the statement from FCA.
At this time, they did not clarify any further. FCA thanked Groupe Renault, its Chairman, Chief Executive Officer, as well as the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, who consulted on the proposal.
“FCA will continue to deliver on its commitments through the implementation of its independent strategy,” the statement concluded.
While we might have been interested to see how Nissan might have benefited Dodge and FCA’s other marques, ultimately we think the proposed merger might have been undertaking too many automotive brands. We await to see what else FCA might be eyeing down the road.