FCA Blames French State for Failed Renault Merger
Fiat Chrysler has backed out of a proposed merger with Renault, blaming ‘political conditions’ in France, whose government owns a 15% share of Renault. A week ago, the companies were poised to form the world’s third-largest automaker.

A team led by French finance minister Bruno Le Maire was reportedly unable to win Nissan’s support for a merger between its factory alliance partner, France’s Renault, and the Italian-American Fiat Chrysler.
Photo by Thomas Bresson via Wikimedia Commons
(Bobit) — Fiat Chrysler Automobiles and its chairman, John Elkann, have pulled a $35 billion offer to merge with Groupe Renault. First made public last week, the proposal, if consummated, would have formed the world’s third-largest automaker.
Sources say talks fell apart Wednesday night after French finance minister Bruno Le Maire requested a six-day postponement of a vote among representatives of FCA, Renault, Renault’s alliance partner, Nissan, and the French government, which owns 15% of Renault.
After Nissan’s representatives abstained from voting, reports suggest, Le Maire held the French state’s vote and asked for more time to seek the endorsement of his Japanese counterparts. Elkann declined.
Renault executives pledged to continue to study the proposal. In a statement, FCA’s directors expressed gratitude to all involved parties but offered little indication the talks would continue anytime soon.
“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,” the statement reads, in part. “However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
Originally posted on Auto Dealer Today
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →