Renault's ongoing delays in whether to engage in formal discussions cited; French government blamed

Fiat Chrysler Automobiles (FCA) has withdrawn its offer of a '50/50 merger' with Renault.

If it had gone ahead the deal would have created one of the world's biggest car firms, but a FCA statement said "it has become clear that the political conditions in France do not currently exist for such a combination to proceed." The decision to withdraw the offer was taken at a meeting of the FCA board.

That comment is a direct reference to the fact that - after more than six hours of talks yesterday - Renault's board again delayed a decision on whether to engage with the proposal. The French government, Renault's largest shareholder, had requested the delay. In a statement Renault said it was "unable to take a decision due to the request expressed by the representative of the French state to postpone the vote to a later council."

FCA had claimed that combined annual revenues from the merger would be around £150bn, with an operating profit of more than £8.8bn a year. It had also claimed thato plant closures would be considered as a result, with output of around 8.7m cars a year.

In its statement withdrawing the offer, FCA said that it "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."

FCA offered its thanks to Renault, along with the French firm's Alliance partners Nissan and Mitsubishi, for their "constructive engagement" over the proposal.

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Analysts had broadly welcomed the possibility of the tie-up between the two firms, with FCA's strength in North America, through its Jeep and Ram brands, giving Renault an opening in that market, and FCA benefitting from Renault and Nissan’s experience with electrified cars, where it is lagging.

FCA also includes the Fiat, Alfa Romeo and Maserati brands. It is not clear if the withdrawal of its offer spells the end of the potential alliance, or if FCA will talk to other partners instead.

Previously FCA is also understood to have also held talks with the PSA Group, which comprises Peugeot, DS, Citroen and Vauxhall/Opel, over a partnership. PSA boss Carlos Tavares is known to be keen to grow his firm with acquisitions or partnerships, and has been strongly linked to a deal with Jaguar Land Rover.

FCA boss Mike Manley is also known to be keen on a partnership, telling reporters at the Geneva motor show that he was open to cooperation with other car firms, “whether it’s partnerships, joint ventures or deeper levels of equity cooperation that makes sense for us and whoever that is.”

Read more

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30

26 May 2019

this means it's going to become even harder to get an alfa romeo with an alfa romeo engine?

26 May 2019

Renault and Chrysler: Two names guaranteed to drive you into OAP-status quicker than a BendyBus on flat tyres

26 May 2019
Real_sluggo wrote:

Renault and Chrysler: Two names guaranteed to drive you into OAP-status quicker than a BendyBus on flat tyres

 

(Oh)...Renault 5 GT Turbo, Renault Clio Williams, Renault Megane RS Trophy R...(dear).

 

Do your homework, or no supper for you! :)

27 May 2019

'ave done me homework and ate me suppa. I've hired french cars; Lived amonsgt the french both in uniform and as a Civilian; driven their cars and motos: I'm not a fan.

I currently own a Ram 3500 (Ram is a subsidiary of Chrysler vis a vis Dodge) lorry. It does one task stupendously well for a Yanks lorry: It'll pull the London bridge and the Palace and not ever strain. The torques are thru the roof (well-tuned of course: no gov't). But, it's no Maybach tho it weighs as much as 2.5 of them; and it suffers from LeafSpring-itis, being it was made in 2012, rather absurdly so. 

Point is I've lived, breathed, and have driven my initial comment. I still wouldn't argue for a renault or a chrysler, Lest ya wanted it to tow the Yorshire Dales to Kent and back for mere frolic and an instagram post

cheerio ;)

26 May 2019
As long as we still get a Ferrari engine in a QF....

28 May 2019

To save, protect and preserve the “specialist”, sporting, “luxury”, and quality(?!) DNA, that is associated with both Alfa Romeo, and with Maserati,  it is to be hoped that they will, individually, both be “de-merged”, and separated, from all the other names within FCA - which are generally regarded as “volume” manufacturers.

For similar reasons, this has already happened to Ferrari, which was spun off from the FCA group in 2016. A controlling amount of Ferrari shares are held by Exor, which would be an appropriate, suitable, place to transfer a controlling  amount of shares in both Alfa Romeo, and Maserati.

27 May 2019

Back in the Seventies/Eighties Renault owned American Motors (AMC), which included JEEP.

So they are getting back together again! Suddenly with this tie-up, PSA looks vunerably small. I bet this will force PSA into buying JLR & to make a global impact I bet they also hook up to Honda.

27 May 2019
jagdavey wrote:

I bet they also hook up to Honda.

 

Given the Nissan-Renault fiasco I doubt any Japanese firm will touch a European car manufacturer.

I think, the opposite is likely and that the Japanese are entrenching against outside influence.

A Japanese merger seems more likely.

27 May 2019

Good point.

Not sure Honda would want a tie up, eg given their motorbike division, but they seem vulnerable. Mazda and Suzuki seem to be doing OK on their own. The Japanese seem to prefer to be under their own control, Nissan and Mitsubishi notwithstanding, but I read recently that some years ago Toyota was seriously looking at buying what is now PSA and they are cooperating on LCV's (although the small car JV is ending) so there's a future permutation.

Renault/FCA looks to me a bit like a new Premier Automotive Group and look how that ended up... 

There needs to be a Chinese involvement in all this, eg Dongfeng.

27 May 2019
Chris C wrote:

 

There needs to be a Chinese involvement in all this, eg Dongfeng.

Dongfeng own 30% of PSA if I remember rightly so unlikely to be involved here.

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