Two of the world’s largest carmakers might quickly be a part of forces. Fiat Chrysler (FCAU) stated Monday that it had submitted a merger proposal to French rival Renault. Every carmaker would control half of the merged entity, it added. Renault (RNLSY) stated in an announcement that its board of administrators would meet on Monday to debate the proposal.
The businesses had been discussing methods to cooperate on merchandise and new applied sciences, however, Fiat Chrysler stated extra could be gained from a merger.”These discussions made clear that broader collaboration by a mix would considerably enhance capital effectivity and the pace of product growth,” the corporate mentioned.
Fiat Chrysler owns manufacturers together with Jeep, Dodge, Alfa Romeo and Maserati. It stated a merger would create an organization with annual car gross sales of eight.7 million. The proposal is the newest instance of established automakers searching for partnerships to share the prices of creating new technologies together with electrical automobiles and autonomous driving systems.
Sherisse Pham and Saskya Vandoorne contributed reporting.