New auto giant emerges in Europe - Fiat to merger with Renault | Eurasia Diary - ednews.net

27 June, Thursday


New auto giant emerges in Europe - Fiat to merger with Renault

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Fiat Chrysler on Monday proposed a merger with its French rival Renault, a move intended to form a global partnership aimed at improving their chances of surviving the coming perilous and costly shift to electric and self-driving cars.

The company statements confirmed reports over the weekend that they were in talks about cooperating. But a full-blown merger illustrates the urgency that automakers feel to find partners.

Fiat said in a statement it was motivated by “the need to take bold decisions to capture at scale the opportunities created by the transformation of the auto industry in areas like connectivity, electrification and autonomous driving.”

By purchasing parts together, combining their manufacturing operations and sharing the cost of research and development, the partnership would eventually save 5 billion euros, or $5.6 billion per year, Fiat said. At the same time, Fiat said, the deal would not result in any plant closings.

 

The New York Times

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