admin Fiat Chrysler Automobiles NV stated it was proposing a merger with Renault SA, a move that is likely to surprise the global automotive industry.
In a news release, the company informed the combined business would be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders with a “balanced governance structure.” They told the majority of the board would be independent.
Renault already has an alliance with Nissan Motor Co. Renault and Nissan have a 20-year-old partnership in which they share technology and vehicle parts. Renault owns 43.4% of Nissan, while Nissan owns 15% of Renault.
The Renault-Nissan relationship has come under stress as the two sides debate whether to overhaul the cross-shareholding arrangement and how to make joint decisions on future models and technologies.
If Renault and FCA merge, it would make a car company with a joint value of about $37 billion and annual vehicle production of almost nine million passenger cars and light trucks. Such a combination would rank as the third-largest automaker by production, behind Volkswagen AG and Toyota Motor Co. but ahead of General Motors Co.
Magazine
