Fiat Chrysler to Merge with Renault? - Forex News by FX Leaders

Fiat Chrysler to Merge with Renault?

Posted Monday, May 27, 2019 by
Arslan Butt • 1 min read

Fiat Chrylser has proposed a merger with French carmaker Renault, which could ultimately progress into an alliance with Nissan and Mitsubishi as well. If this deal goes through, it could become the biggest automobile alliance in the world, overthrowing Volkswagen.

A statement from Fiat Chrysler confirms the news that both companies’ shareholders would enjoy an equal stake in the merged business. The deal could not only create a new leader in the highly competitive automobile sector but also help address weaknesses in Fiat Chrysler and Renault respectively.

However, it remains to be seen what impact the arrest of Nissan chief Carlos Ghosn will have on the proposed merger and the subsequent potential partnership with Nissan and Mitsubishi.

Rising costs of innovation in the field of electric, connected and autonomous vehicles, coupled with tightening emissions norms worldwide are creating new challenges for automobile manufacturers in the present day. A merger like the one between Fiat Chrysler and Renault offers an opportunity to combine resources and take on such challenges more effectively.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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