Paris: French and Italian-US auto giants Renault and Fiat Chrysler are set to announce talks on an alliance, with a view to a potential merger, informed sources said. Renault and FCA are likely to unveil the move “within hours, perhaps tomorrow (Monday), before the (Paris) bourse opens,” one of the sources told AFP on condition of anonymity, adding an eventual “merger” was on the agenda. The same source added a statement would cover “the possibility of a convergence between the two groups” which “will be studied” with a view to a potential merger.
A Renault board meeting is scheduled for 8:00 am on Monday. Renault’s current major partnership is with Japan’s Nissan, in which it holds 43 pc. Nissan in turn owns 15 pc of its partner Renault but the imbalance in the relationship has led to frictions, highlighted by the arrest of former Renault and Nissan chief Carlos Ghosn. The FT reported that the Renault-FCA discussions were at an “advanced” stage and could lead to “extensive cooperation”.