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If the two combine, the new merged company would become the world’s third-largest global automaker.

By Joey Capparella, May 27, 2019

Fiat Chrysler said in a statement that it is proposing a 50/50 merger with French auto giant Renault.

The tieup would create the world's number-three automaker in size, behind only Toyota and Volkswagen, comprising 13 brands.

Perhaps most intriguing, Renault would gain access to the U.S. market, opening the door to eventually selling products to American buyers.

Fiat Chrysler Automobiles (FCA) is proposing a merger with French automaker Renault, in which the two companies would each own 50 percent of the other. This merger would create the world's third-largest global automaker, putting it behind Toyota and Volkswagen and vaulting ahead of Hyundai-Kia. The arrangement would not affect the existing alliance that Renault has with Nissan and Mitsubishi, except for the fact that Nissan would have the opportunity to nominate a person to the board of the new combined Renault-FCA merged company.

Renault said in a statement that it will study the proposal closely, which makes it sound as though the deal is likely. It will take some time for the two companies to sort out all the particulars, so the merger may not be officially formed for several more months.

FCA Sought a Merger

It's no secret that FCA has been searching for such a deal for years. The late CEO Sergio Marchionne was open about the fact that a merger would be beneficial for his company, and he had unsuccessfully courted several automakers, including Volkswagen and General Motors. Renault had been one of the companies discussed as a potential partner for FCA in the past, and it seems no coincidence that the talks have finally progressed now that the fallout from the arrest on financial-misconduct charges of Carlos Ghosn, former CEO of the Renault-Nissan Alliance, has begun to settle. According to many news reports, Ghosn had been looking to merge Renault and Nissan beyond the existing alliance, an arrangement in which the companies own minority stakes in each other.

Implications for Future Cars

What will a merger between Renault and FCA look like in terms of product? That is something that will be sorted out over the coming years if the merger does go through. One of the implications is giving Renault direct access to the U.S. market. The proposal also suggests that the two automakers will share all sorts of technologies, powertrains, and manufacturing facilities, meaning that the cars they sell would share component sets at some point.

The combined company would include 13 brands in total: FCA's Chrysler, Fiat, Dodge, Jeep, Ram, Alfa Romeo, Maserati, and Lancia; plus Renault and its brands, which include low-cost brand Dacia; Lada, which is aimed at the Russian market; Renault Samsung Motors, for certain Asian markets; and sports-car brand Alpine.

https://www.caranddriver.com/news/a27574482/fca-renault-merger-details/
 

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Could it be that the Megane RS Trophy R and Alpine A110 hit the shores of North America?
 

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Could it be that the Megane RS Trophy R and Alpine A110 hit the shores of North America?

I wish, but I wouldn't keep my hopes up. Renault could've re-badged the Megane RS as Nissan and had the dealership network in place already to support the model and they've never did, don't think the would do it with a new alliance.
 

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I wish, but I wouldn't keep my hopes up. Renault could've re-badged the Megane RS as Nissan and had the dealership network in place already to support the model and they've never did, don't think the would do it with a new alliance.
It would be nice to see Renault back in the US. At the same time their cars would be a hard sell given most only remember or know of the Renault Alliance/Encore/9 and 11 from the days of AMC. Heck many never even heard of the Renault GTA for the American market. Anyone remember the Renault Fuego?
 

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It would be nice to see Renault back in the US. At the same time their cars would be a hard sell given most only remember or know of the Renault Alliance/Encore/9 and 11 from the days of AMC. Heck many never even heard of the Renault GTA for the American market. Anyone remember the Renault Fuego?

Renault Fuego was my childhood dream. I saw one here in Arlington I was ecstatic. Luckly, I have a very good friend who had a Renault Fuego GTA MAX (Argentinian market only) with an uprated camshaft and carburator. I've enjoyed and drived that car. It was beautiful!
 

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Probably didn't help that FCA has a couple of lawsuits against it ongoing, including a whistleblower lawsuit claiming they doctored their sales numbers.
 

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