FCA Withdraws from Merger with Renault
Citing unsatisfactory political conditions, FCA announced the proposed merger with Groupe Renault is not going forward.
Well, that was fast. The board of Fiat Chrysler Automobiles (FCA) who manufactures Jeep met this evening under the Chairmanship of John Elkann, and has decided to immediately withdraw its merger proposal made to Groupe Renault that would have made them the third largest global automaker. The merger would have brought together a huge group of marques under one umbrella including from Jeep, Dodge, and Renault-Nissan.
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.” FCA said in a released statement.
They thanked Groupe Renault, their executive board, as well as Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their assistance and consultation.
FCA concluded that they “will continue to deliver on its commitments through the implementation of its independent strategy.”
We must say we think this is ultimately good news for Jeep, as certain brands can get lost or put on the back burner in a merger. We will be interested to see what other options, if any, FCA will pursue.