"There has been talk of long-term consolidation," said Michelle Krebs, senior analyst at Autotrader, who noted that former Fiat Chrysler CEO Sergio Marchionne was a major proponent. "It's not surprising that it is coming now."
Carmakers need to focus on future transport. But the first major problem is to flag sales.
Sale of cars in the US also pushes. Fiat Chrysler's US sales fell more than 3% in the first three months of 201[ads1]9 compared to the previous year.
"We're in a post-peak era where sales have hit record, so come down a little," Krebs said.
However, the amount of money the car manufactures must mark for research and development, balloon formation, especially since competition with Silicon Valley is heated.
Still others are also moving to deepen partnerships and alliances so they can spread development spending. Germany BMW and ) Daimler ( puts $ 1 billion at a one-time rate on developing the tour and charging services. Ford and Volkswagen are building some new cars together. )
A merger between Fiat Chrysler and Renault would take such a collaboration a step further. The companies had discussed ways to build on new products and technology, but Fiat Chrysler claimed that a merger would be best.
Fiat Chrysler owns brands like Jeep and Ram have a lot of growth potential abroad, especially in the Middle East and Africa where Renault is strong, Krebs said.
However, Renault does not have a significant presence in North America, where Fiat Chrysler is a major player.
In addition, Renault is considered the leader in electric vehicles, while the Fiat Chrysler has settled behind. The Italian-American company said a merger with Renault would produce annual cost savings of over $ 5 billion ($ 5.6 billion). Nissan hits “rock bottom” som Renault presser for en fusjon ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/190514000437-nissan-motor-hq-japan-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>