Renault And FCA Are Both Open To Restart Merger Talks

Fiat Chrysler and Renault-Nissan are reportedly still open to a potential merger but executives are wary of conditions imposed by both sides that could hinder the efforts for restarting talks.

Citing people familiar with the matter, Wall Street Journal reports that Renault officials remain optimistic, expecting that the outcome of Nissan’s shareholder meeting this week will enable them to restart the merger negotiations with FCA.

Nissan has also not rejected the possibility of an eventual deal but wants to reshape the alliance’s structure in order for them to be flexible and independent from each other.

Also Read: Japanese Government Allegedly Involved In The Collapse Of The Renault-FCA Deal

Renault CEO Thierry Bollore said previously that there are no talks between them and Fiat Chrysler after the latter withdrew its proposal.

FCA took their merger proposal off the table after the French government, Renault’s biggest shareholder, sought to further delay the talks in order to persuade Nissan to get on board with the deal. Fiat Chrysler officially put the blame on “political conditions in France” for its decision, and in order for the merger talks to restart, the French government must give up its sway over Renault according to people with knowledge of the situation.

Renault’s priority right now is to repair the relationship with Nissan, with the French government deeming it critical for the success of an FCA-Renault marriage.

A potential deal between Renault-Nissan and Fiat-Chrysler could create the world’s third largest automaker, offering big cost savings to all involved as the development of EVs and autonomous-driving technologies ramps up.