FRANKFURT / PARIS – Fiat Chrysler Automobiles this week is set to propose to merger with Renault, Nikkei learned on Sunday.
Global car sales last year totaled 4.84 million vehicles. A merger with Renault would bring the combined sales of the two companies to 8.72 million, surpassing General Motors of the US, which sold 8.38 million cars last year and ranked fourth in global vehicle sales.
FCA intends to keep Renault's alliance with Nissan Motor and Mitsubishi Motors if it is.
If FCA joins the Renault-Nissan-Mitsubishi Alliance, annual sales would be top 1
Unlike the Renault-Nissan-Mitsubishi Alliance, which lacks strength in luxury cars, FCA holds several high-end brands, including Maserati and Alfa Romeo.
FCA's earnings are mostly dependent on its sales in North America. A merger with Renault, which gets most of its earnings from the European market, would complement each other's weaknesses. A merger would also benefit both in terms of production and investment in new areas, such as AI and electric vehicles
FCA has sought to streamline its business by scaling up. Sergio Marchionne, the late chief executive of FCA, previously proposed and integration with General Motors. In March, Groupe PSA of France reported a merger with FCA
Michael Manley, who became FCA's CEO in March 2018 following Marchionne's death at age 66, is also considered to be open to possible merger or integration with other automakers. 19659002] "We are expecting various opportunities in a couple of years," Manley said on May 3 in an earnings briefing call. "FCA will take an aggressive move."
Renault proposed to Nissan to restart talks on a merger in April and is also expected to put more pressure on Nissan to review their capital ties after Nissan's general shareholders meeting in June. An FCA-Renault would probably most likely affect discussions between Nissan and Renault.