Number Three?

Italian-American company, Fiat Chrysler (FCA) is the world’s 8th largest automaker. It has proposed merging its business with Renault, another automobile manufacturer and also the world’s biggest seller of light vehicles since 2017. If this offer is accepted by Renault they would become the world’s third largest automaker selling 8.7 million vehicles annually, just behind Volkswagen and Toyota. FCA also said that this deal would save $5.6 billion.

The proposition delivered by FCA states that the combined business would be 50% owned by Fiat shareholders and 50% owned by Renault stockholders. However, Renault is partly owned by the French government and has also partnered with Japanese companies Nissan and Mitsubishi. This proposition comes at a time when carmakers are under pressure due to the shift in the industry towards electric vehicles, and automated cars.

What do you think about this? Should Renault merge with Fiat? Tell us in the comments below…

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