Fiat Chrysler Automobiles (FCA) and Renault are reported to be in ‘advanced discussions’ over a wide-ranging partnership, which could ultimately lead to the FCA Group joining the Renault-Nissan-Mitsubishi Alliance.
The talks, first reported by the Financial Times and subsequently by Reuters, are focused on the potential for co-operation between FCA and Renault, and are said to be at “an advanced stage”. The FT reports that Nissan has not been involved in the talks so far.
FCA, Renault and Nissan have all declined to comment.
FCA and Renault already have a partnership to produce commercial vehicles, and have previously held talks over sharing platforms. It is understood those talks have now moved beyond technology sharing into a wider-ranging partnership.
A source told Reuters that the talks could involve a transfer of equity between FCA and Renault, saying “this isn’t just another partnership.” If the two firms did take a stake in each other, it would be similar to the agreement between Renault and Nissan that led to the creation of the Alliance between the two firms, spearheaded by Carlos Ghosn, who served as chairman of both companies.
The future of the Alliance is currently the subject of talks between the two car makers following Ghosn’s arrest in Japan on financial fraud charges..
The two firms could both benefit from a tie-up. FCA is strongest in North America, through its Jeep and Ram brands, where Renault has no presence. Conversely, FCA is some way behind its rivals with plans to develop electric cars, and could benefit from Renault and Nissan’s experience in this area.
FCA also includes the Fiat, Alfa Romeo and Maserati brands.
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