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Fiat Chrysler and Renault Could Create One Big Automaker

(Credit: Nissan)

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Fiat Chrysler and Renault Could Create One Big Automaker

It’s not a done deal, but Renault is considering a proposal from Fiat Chrysler that would make the two automakers equal partners. This merger would cause some big shifts in the auto industry, considering Fiat Chrysler Renault would be third-largest automaker worldwide, knocking GM off its current perch.

The costly push toward electrification and autonomous driving technologies are big reasons these two are looking to merge. Former CEO Sergio Marchionne saw the company needed to merge with another big automaker to make these tech advancements, and this might be the big moment.

Nothing’s for certain, and after false alerts that FCA was going to merge with several other automakers, it’s best to take this news with a grain of salt. That, and Renault is already in an increasingly messy entanglement with Nissan and Mitsubishi, but those complications might be why the French automaker would consider this new merger.

Nissan and Mitsubishi have stayed silent during this new development. That, of course, has led to all kinds of speculation. Will Nissan and Mitsubishi use this opportunity to find a way out of the Alliance? There’s been a flareup of tension in the Renault Nissan Alliance, making its future uncertain. Is the resistance of the Japanese automakers the reason Renault is open to merging with Fiat Chrysler?

At least for now, Fiat Chrysler says the merger wouldn’t result in any plant closures, but who knows what the future would bring?

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