Fiat Chrysler and Renault, two automakers looking to curb costs producing vehicles and pool resources for developing the next generation of automobiles, are planning a merger to create the world’s third largest automaker.
Key Points
- The combined business would be owned 50/50 between shareholders of FCA and Groupe Renault.
- The joint organization would produce estimated sales of 8.7 million vehicles a year.
According to a statement from Fiat Chrysler Automobiles, the combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. A board of governors would hold a majority of independent directors.
The merger still requires approval by the boards of both automakers.
The joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world’s third largest car manufacturer.
Fiat Chrylser said the combined entity would generate savings of 5 billion euros annually ($5.6 billion) and be “carried out as a merger transaction under a Dutch parent company.
CNBC