Fiat Chrysler proposes merger with Renault

28 May 2019

Fiat Chrysler proposes merger with Renault

Italian-American car manufacturing company, Fiat Chrysler has proposed a merger* with Renault - a France-based vehicle manufacturer.

What happens if the proposal gets accepted?

The joint company would become the world’s third largest car manufacturer with a production of 8.7 million vehicles in a year.
 	The companies would share research and technology with each other which would help them save US$5.6 billion (₹389 billion).
 	Both companies would have an equal share in the new joint company.

The merger requires approval by the board of directors of both companies.

The French government, which owns 15% of Renault, has indicated that it would support a merger.

Fiat Chrysler has a strong presence in the SUV (Sport utility vehicle) segment of the US market, while Renault is stronger in the electric car industry in Europe.

The deal could potentially reshape the global automobile industry.

*Merger (noun): a combination of two things, especially companies, into one.

Credits: TCP

Image Credits: Wikimedia Commons

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Italian-American car manufacturing company, Fiat Chrysler has proposed a merger* with Renault – a France-based vehicle manufacturer. What happens if the proposal gets accepted? […]

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