Looking to survive in the competitive global auto industry, Fiat Chrysler Automobiles NV and Renault SA of France are exploring a 50-50 merger, the Detroit News reports. If consumated, the move would create the third-largest global automaker behind Toyota Motor Corp. and Volkswagen Group.
Fiat Chrysler advanced talks with the French automaker Monday by submitting the merger proposal to Renault's board of directors, report Nora Naughton and Daniel Howes of The Detroit News.
"After careful review of the terms of FCA’s friendly proposal, the Board of Directors decided to study with interest the opportunity of such a business combination, comforting Groupe Renault’s manufacturing footprint and creating additional value for the Alliance," Renault said in a statement released after the automaker's board meeting. "A further communication will be issued in due course to inform the market of the results of these discussions, in accordance with applicable laws and regulations."
The new company would have a single management team.