According to reports, Fiat Chrysler Automobiles (FCA) and Renault had extensive discussions on a broad partnership that could lead to the integration of the FCA Group into the Renault-Nissan-Mitsubishi alliance.
The talks, focus on the potential cooperation between FCA and Renault and say they are in an advanced stage. However, Nissan has not yet participated in the discussions.
FCA and Renault already have a partnership for the production of commercial vehicles and have already had discussions on sharing platforms. Of course, these discussions went beyond technology sharing to become a larger joint venture.
A source stated that the talks could involve a capital transfer between FCA and Renault, saying it is not just a partnership. If both companies are interested in each other, it would be similar to the Renault-Nissan agreement that led to the establishment of the alliance between the two companies, led by Carlos Ghosn, president of the two companies.
The future of the alliance is currently being discussed between the two automakers after Ghosn’s arrest in Japan over allegations of financial fraud.
Both companies can benefit from a merger. FCA is the strongest in North America through its Jeep and Ram brands, where Renault is not present. FCA, on the other hand, has plans for the development of electric cars and can take advantage of the experience of Renault and Nissan in this area.
FCA also had discussions with the PSA group, formed by Peugeot, DS, Citroën and Vauxhall/Opel as part of a partnership. PSA chief Carlos Tavares is known for expanding his business through partnerships and acquisitions. It is closely linked to an agreement with the Jaguar Land Rover.
FCA boss Mike Manley also wants to form partnerships and mentioned at the Geneva Motor Show that he is open to collaborating with other carmakers.