Fiat Chrysler Cars and Renault are reportedly in talks that can result in the merging of large corporations into their businesses, a feature that illustrates the growing desire of automakers to consolidate in an increased regulatory environment , sales are slowing and rising costs aimed at bringing next-generation technologies to the market as self-propelled cars.
Bloomberg, the Financial Times and the Wall Street Journal have reported talk conversations that could eventually lead to Fiat Chrysler becoming part of the Renault-Nissan Motor alliance. For now, the agreement does not imply Nissan, according to Bloomberg.
FCA refused to comment.
Fiat Chrysler is best known in the United States for the company behind Jeep and Ram trucks. The business is far larger. Fiat, which has a market value of $ 20 billion, is also one of Italy's oldest companies and owns brands such as Alfa Romeo, Fiat, Lancia and Maserati .
Fiat acquired a stake in Chrysler in 2009. Today, the FCA people ̵[ads1]1; employing nearly 200,000 people – were created when the companies merged in 2014.
It is unclear what the agreement between FCA and Renault may cause. Some of these details can come as early as Monday when Renault's board meets.
What is the startup for Fiat Chrysler? The car manufacturer, which also owns the automotive industry Mopar, has an unbalanced business. Almost a third of their employees are in Europe. And yet, most of the profits are derived from North America. Such a connection can result in significant cost savings in Europe.
These cost savings will come in handy if there is a drop in sales – a reality that other automakers like GM and Ford are already preparing for. And it gives the company the opportunity to collaborate or share costs on the expensive efforts to bring new technology to the market, such as electrification and autonomous vehicles.
FCA, which operates 46 research and development centers, has invested in advanced driver assistance systems that its highway helps feature provided in the Maserati brand. But it has also been dependent on partnerships like the one with the Waymo car vehicle .
Last year, the company announced an extended partnership with Waymo that will add up to 62,000 more Chrysler Pacifica minivans to the Waymos self-driving car fleet. The two companies are also working on ways to license Waymo's self-propelled car technology to distribute the technology in cars to consumers.