Fiat Chrysler and Renault in advanced talks over comprehensive tie-up
Fiat Chrysler and Renault have entered talks over a global partnership to strengthen both firms amid a challenging environment for car manufacturers.
The two car giants have been in advanced discussions over a deal to forge “extensive ties” to tackle challenges facing the auto industry, the Financial Times reported.
Read more: Renault to propose joint holding company with Nissan
Fiat Chrysler could even make an announcement on the tie-up tomorrow, while the French carmaker’s board will meet on Monday morning, French newspaper Le Figaro first reported.
Together the companies have a combined market cap of close to €33bn (£29.1bn).
The deal could see Fiat Chrysler, which includes Fiat, Alfa Romeo, Jeep and Maserati, join the Renault-Nissan-Mitsubishi alliance, which was led by Carlos Ghosn before his arrest in Japan over alleged financial misconduct.
Read more: Prosecutors hit former Renault boss Carlos Ghosn with fourth charge
It comes after weakening auto demand led several US carmakers to make cutbacks.
The industry has also battled tougher emissions regulations, challenges posed by the rise of electric vehicles, and technologies powering autonomous cars.
Renault has also moved in recent months to propose a joint holding company with Japanese partner Nissan to give the two firms equal footing.
The proposal, under which ordinary shares in both carmakers would be transferred to the new company on a balanced basis, would target further integration between the two companies.
But Nissan has reportedly pushed back against the proposal, because the structure won't help turn the Japanese car manufacturer around.