Fiat Chrysler in talks over ties with Renault: source




  • In Business
  • 2019-05-25 19:15:09Z
  • By Reuters
FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at its U.
FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at its U.  

MILAN (Reuters) - Italian carmaker Fiat Chrysler Automobiles NV is in talks to form ties with Renault SA, a person familiar with the matter said on Saturday.

It was too early to say whether the negotiations would result in a formal union, but they were focused on co-operation between the two companies, the source said.

The Financial Times https://on.ft.com/2HRDghE had reported earlier that Fiat Chrysler was in advanced discussions to forge extensive ties with Renault, as the carmakers were seeking to join forces to tackle structural challenges facing the global auto industry.

An agreement might ultimately lead Fiat Chrysler to join the Renault-Nissan-Mitsubishi Alliance in the future, the FT reported, cited sources, some of whom warned that this outcome would mean taking a complicated path that would involve winning over Japan's Nissan Motor Co Ltd.

The newspaper cited Renault and Fiat Chrysler as declining to comment and said a spokesman for Nissan did not reply to a request for comment.

Renault Chief Executive Jean-Dominique Senard said on Saturday that Renault, Nissan and Mitsubishi may discuss a merger later in the future.

The FT had reported in March that Renault intends to restart merger talks with Nissan within 12 months, after which it will set its sights on a bid to buy Fiat Chrysler.

The plans signaled a return to the strategies supported by former Nissan boss Carlos Ghosn who held talks about merging Renault with Fiat Chrysler two to three years ago, the FT said in March. The report added that the French government had opposed the move.


(Reporting by Giulio Piovaccari in Milan and Kanishka Singh in Bengaluru; Additional reporting by Inti Landauro in Paris; Writing by Frances Kerry; Editing by Andrew Heavens)

COMMENTS

More Related News

Renault chairman dismisses fears over potential Maubeuge closure
Renault chairman dismisses fears over potential Maubeuge closure

Renault has no plans to close its Maubeuge plant in northern France, Chairman Jean-Dominique Senard said on Sunday, two days after the carmaker announced 15,000 job cuts globally as part of a major restructuring. The recovery plan, which would eliminate 4,600 jobs in France, aims to consolidate the Maubeuge site's vehicle production with that of the nearby Douai plant. "I have no intention of closing the Maubeuge factory," Senard said on LCI television on Sunday after thousands of employees and family members demonstrated outside the plant the previous day.

Thousands protest mass Renault job cuts
Thousands protest mass Renault job cuts

Thousands of workers rallied Saturday outside the Renault factory in northern France to protest the automaker's decision to cut 15,000 jobs worldwide, including 4,600 in France. Unions said 8,000 people took part in the protest at the Maubeuge subsidiary over the cuts designed to help Renault steer out of a cash crunch exacerbated by the coronavirus pandemic. "This demonstration today is very important, even if it is a first step, to show the government and Renault that workers and residents of this area are committed to this company and that we have support," Delvaux added.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business