FCA-Renault Merger Update to Dealers
May 27th, 2019
Here is the communication from FCA to the Dealers regarding the news in the media about a possible FCA-Renault merger. Sounds like there is still lots of work ahead, but this would be very exciting news!
To Our Dealer Colleagues,
Today, Fiat Chrysler Automobiles announced it has proposed a 50/50 merger with Groupe Renault in a bold step that will dramatically change both companies and the automotive industry.
The merger will create a preeminent global automotive group at a time of unprecedented transformation in the industry. The new company – which will be named at a later date – would have worldwide annual sales of nearly 9 million vehicles and a broader and more balanced global presence than either company on a standalone basis.
I want to stress, we are only in the beginning stages and there is no certainty that this proposal will result in a transaction, but if successful, we expect this entity would be a world leader in EV technologies as well as premium brands, SUVs, pickup trucks and light commercial vehicles.
It is important to note, the benefits of the proposed transaction are not predicated on plant closures but would be achieved through more capital-efficient investments in common global vehicle platforms, architectures, powertrains and technologies.
In Groupe Renault, we found a like-minded partner who sees the future as we do. What started as initial operational discussions around greater collaboration evolved into discussions about a merger, as we recognized the enormous potential benefits for both companies that would result from bringing these businesses together. The benefits that would accrue from a combination of Groupe Renault and FCA, we believe, would also extend to the Alliance partners – Mitsubishi and Nissan – and we look forward to engaging with them.
In our mind, this proposed merger has the potential to add value across the board – for FCA, Groupe Renault and all our stakeholders as well as for the Alliance partners. It will also signal to the sector what can be achieved if one is bold – and to that end, while there is no certainty of a deal, we aim to move as quickly as possible to secure a final agreement with Groupe Renault. Our Board has strongly supported the proposal which will now be reviewed by the Groupe Renault Board of Directors.
For now, nothing has changed and it is business as usual at FCA.
I know you have questions, but until we conclude our talks we may not have all the answers. I will endeavor to keep you informed with updates in due course. Today’s announcement can be found on our website at www.fcagroup.com.
Head of U.S. Sales
Chairman and CEO of FCA Canada Inc.