FRANKFURT, Germany / PARIS – Fiat Chrysler Automobiles this week is set to propose a merger with Renault, Nikkei learned on Sunday.
Fiat Chrysler Automobiles, or FCA, is expected to propose the start of discussions for a merger In a few days, several sources told the Nikkei case.
Last year, FCA's global vehicle sales amounted to 4.84 million units. A merger with Renault would bring the two companies together to 8.72 million, which surpassed US General Motors, which sold 8.38 million cars last year and ranked fourth in worldwide car sales.
Alliance relations between the French automaker and Japanese partners Nissan Motor and Mitsubishi Motors will remain unchanged in such a merger proposal.
If the FCA were to join the Renault-Nissan-Mitsubishi Alliance, annual sales would exceed 1[ads1]5 million vehicles, no. 1 in worldwide car sales last year by 10.83 million.
Unlike the Renault-Nissan-Mitsubishi Alliance, which lacks the strength of luxury cars, FCA has more high-end brands, including Maserati and Alfa Romeo.
FCA's earnings are mostly dependent on sales in North America. A merger with Renault, which receives the most revenue from the European market, will complement each other's weaknesses. A merger will also benefit both car manufacturers in terms of production and investment in new areas, such as artificial intelligence and electric vehicles.
FCA has sought to streamline its business by upgrading. Sergio Marchionne, the late CEO of FCA, previously suggested an integration with General Motors. In March, Groupe PSA of France announced a merger with FCA.
Michael Manley, who became FCA's CEO in July 2018 just before Marchion's death for 66 years, is also considered open to a possible merger or integration with other automakers. 19659002] "We expect different opportunities in a few years," Manley said on May 3 in an earnings information call. "The FCA will take an aggressive move."
Renault proposed to start talks with Nissan for a merger in April, and is also expected to put more pressure on the Japanese machine to review its tied up capital after Nissan's June General Assembly. An FCA Renault merger would most likely affect the discussions between Nissan and Renault.