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Fiat Chrysler Likely To Merge With Renault—Report

Two auto giants likely to come together to develop next generation vehicles!  Renault and Fiat Chrysler plan to cut production costs, combine their resources to rank third among the global automakers. They aim to focus on autonomous and electric vehicles.

The merger is yet to be approved by the auto giants’ Board of Directors.  News sources stated that early next week would see a formal decision coming from the Renault board during their informal meet in a few days wherein they will decide if they want to move further on the planned total merger.

Shareholders of Groupe Renault and FCA will have a 50-50 stake in the merger with a board of governors comprising a major number of independent directors in place.

The annual sales of the intended merger is said to total to about 8.7 million vehicles making them third largest among the world’s auto makers. Fiat Chrysler reported the annual savings of the combined entity to rank in the region of 5 billion euros. No plant closures would be involved and Fiat Chrysler called upon the union to take a positive stance for the development of driverless and electric vehicles in times to come.

Fiat Chrysler alliance with Renault is not expected to impact Nissan-Renault-Mitsubishi partnership. However, speculation is rife that all is not well with the French based automaker and Japan’s Nissan Company. The partnership is traversing through rough seas since the arrest of Carlos Ghosn, the Nissan-Renault CEO in the later months of previous year.

The previous year saw global sales of Fiat Chrysler touching 4.85 million vehicles largely catering to the North American market with RAM Trucks and Jeep being the consumer favorites. At the same time, Renault’s global sales for 2018 touched 3.81million vehicles majorly catering to the European market.

Shares of Renault and Fiat Chrysler recorded a jump of 11.5% and 13%, respectively.

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