FCA and Renault are in "advance" talks to partner,with CTC having more power than all of Nissan

[Bili]

FCA, France reach tentative deal on Renault merger, report says

PARIS/MILAN -- Fiat Chrysler Automobiles has reached a tentative agreement with France on the terms of its proposed merger with Renault, two sources told Reuters, as the French carmaker's board met to consider the bid late on Wednesday.

The French state, which owns 15 percent of Renault, had been seeking more influence over the merged company, firmer job guarantees and improved terms for Renault shareholders in return for blessing the $35 billion tie-up.

Renault, FCA and the French government all declined to comment on the ongoing board discussions.

The new understanding between Paris and FCA, nine days after the Italian-American carmaker pitched its offer, does not mean that Renault board approval is automatic, the two sources close to the talks also cautioned.

Renault directors meeting at the company's Boulogne-Billancourt headquarters outside Paris may decide on Wednesday whether to approve a memorandum of understanding or framework agreement that would begin the long process of a full merger.

FCA has been locked in talks with Renault and the French state over its bid to create the world's third-biggest carmaker. France has broadly welcomed the deal, on condition it guarantees Renault's domestic blue-collar jobs and plants.

 

[Muther]

So, as a racer, this is sort of my wet dream. Three of my favorite Racing Marques will all be together: Mopar, Nissan, Renault, Alfa Romeo, Lance’s, Maserati.

Renault F1 is the former Lotus F1 team. Nissan is legendary in racing circles. They race to win. Period.

This is so mind bogglingly beautiful. I am losing my mind. Total freak out mode. So, how much bleed over will there be in terms of racing. Ferrari is separate, but supplies F1 engines to the new Alfa labeled effort.

Is there room for two F1 teams in the house? Alfa and Renault? And to a lesser extent Ferrari? What about Nissan? Any series they choose to contest, they dominate. They are fierce. Losing is NOT San option for them. Racing is war to Nissan. Then there is the whole rally thing. Lancia, Mitsubishi, and Renault are rally legends. Between them, nobody has more wins or championships.

If they appoint a FCARNM Racing czar, tell them that I would love to work for them.

I am losing it over here…

 

[Muther]

How about this for a name.

The French-Italian-American-Japanese-Transportation Company. Or FIAJT for short. The J is silent.

 

[Muther]

FCA sends a letter to GM.

Hey Mary, remember our offer? Yeah, forget about it.

 

[Bili]

From what I've heard FCA workers in Italy has received an e-mail where it says that Manley will have a press conference tomorrow.

From my side. I always loved Italian cars. Namely Fiat and Alfa. Ferrari is something else, out of reach. Lancia is a car for old farts with Delta as an exception, but only 1st generation Delta. Usually Lancia's qualities are not in common with Italian car industry, no wonder that it always had the least popularity and sales outside of Italy when we took it as percentage of total sales.
Old Chrysler was a nice, back at the time of 300M IMO it was the most European car from US. And Jeep is a Jeep. It's something special, we in Europe are calling every SUV or crossover a "jeep".
And finally Renault. The most desirable French brand. At least it's for me. And I like their RS models. As I said I like them more than PSA brands and all German brands.

So this merger is perfect for me. Almost no brand which I don't like. All are very high on my list.

 

[Freshforged]

if you have the popcorn, go over to the other site and watch people's heads explode. they dont even realize nissan and Mitsu aren't part of this merger.

 

[Bili]

Communication of Renault’s Board of Directors
June 06, 2019

Boulogne-Billancourt, June 5th, 2019 – Renault S.A.'s Board of Directors met today under the chairmanship of Jean-Dominique Senard, to continue reviewing with interest the proposal received from FCA (Fiat Chrysler Automobiles) for a potential 50/50 merger between Renault S.A. and FCA.

The Board of Directors was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.

Communication of Renault’s Board of Directors

 

[Bili]

Breaking News
Fiat Withdraws Merger Bid After Renault Delays Decision on Combination

Fiat Chrysler Automobiles NV withdrew its plan to merge with Renault SA, after the French carmaker’s board failed for a second day to reach a conclusion on the proposal, according to people familiar with the matter, Bloomberg News reports.

Bloomberg - Are you a robot?

 

[Bili]

if you have the popcorn, go over to the other site and watch people's heads explode. they dont even realize nissan and Mitsu aren't part of this merger.

PARIS—Fiat Chrysler Automobiles NV has withdrawn its proposal to merge with Renault SA after the French auto maker’s alliance partner, Nissan Motor Co., refused to back the deal, according to people familiar with the matter.

Nissan’s two representatives on Renault’s board were withholding support late Wednesday as other board members prepared to vote in favor of the $40 billion merger, the people said. The planned abstentions raised doubts about Nissan’s commitment to preserving the alliance if the merger were to proceed,...

 

[Bili]

According to Morgan Stanley value of Renault without Alliance is just 4 billion euros. No wonder that Elkann withdrew an offer.

 

[mopar22]

Guess Nissan was more involved then everyone thought eh?

 

[Bili]

Indirectly... It depends on them how much Renault values. Without Alliance it's much less than FCA and in that case 50:50 merger offer doesn't make sense. It should be more like 80:20 offer. LOL

 

[mopar22]

Either way Nissan had more say they what anyone else thought so fca decided to pull out before it became a bigger mess

 

[Bili]

FCA would maybe take a risk but French Government wanted Nissan as a member of Alliance. Because it was not granted French Government has postponed merger decision after which FCA withdrew merger offer.

 

[Bili]

FCA withdraws merger proposal to Groupe Renault

The Board of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA), meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault.

FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.

FCA expresses its sincere thanks to Groupe Renault, in particular to its Chairman and its Chief Executive Officer, and also to the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal.

FCA will continue to deliver on its commitments through the implementation of its independent strategy.

Stellantis Media - FCA withdraws merger proposal to Groupe Renault

The Board of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA), meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault.

media.fcanorthamerica.com

 

[Mopar426]

I still don't see why FCA needs a partner. They need money, sure, but the "merger" that happened back in 2008/2009 was going to be great because Fiat had the small engines and FWD cars and Chrysler had the V8's, SUV's and trucks. Pull Fiat out of north America and push them into Brazil/south America, fold the trucks back into Dodge and build the brand out with more affordable and fun performance cars for all. Make Chrysler a low buck people mover brand, use Fiat platforms, turbo 4's and 6cyl with traditional automatics and styling. Not everyone can afford or wants a Jeep, Ram 1500 or huge Challenger or Charger. They have everything they need, what they don't need is the French gov't sitting at the table - would have been a disaster.

 

[ViperDave]

Im not that dissapointed in this news.

 

[Bili]

I still don't see why FCA needs a partner. They need money, sure, but the "merger" that happened back in 2008/2009 was going to be great because Fiat had the small engines and FWD cars and Chrysler had the V8's, SUV's and trucks. Pull Fiat out of north America and push them into Brazil/south America, fold the trucks back into Dodge and build the brand out with more affordable and fun performance cars for all. Make Chrysler a low buck people mover brand, use Fiat platforms, turbo 4's and 6cyl with traditional automatics and styling. Not everyone can afford or wants a Jeep, Ram 1500 or huge Challenger or Charger. They have everything they need, what they don't need is the French gov't sitting at the table - would have been a disaster.

Diversification. Simple as that. They must be profitable, very profitable, in all regions. Following the footsteps of ever smaller GM is not a good solution.

In any case this deal wouldn't change North American operation so I don't expect anything new on that front.

 

[Mopar426]

Diversification. Simple as that. They must be profitable, very profitable, in all regions. Following the footsteps of ever smaller GM is not a good solution.

In any case this deal wouldn't change North American operation so I don't expect anything new on that front.

What diversification do they need? They literally have everything already.

Electric cars that don't make money????

They have made some poor decisions and I think this was supposed to bail them out of it. Over investing into Alfa, cars that barely sell no matter the region was the biggest one while literally ignoring Dodge and using it as an ATM in their most profitable region and it seems they hinged that decision off the darts failure, which was their own doing.

 

[AlexB]

The French at the last minute attempt to get more concessions from FCA , and use Nissan as an excuse:
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