FCA puts merger offer to Renault board

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Page 1 of 5 123 ... LastLast
Results 1 to 15 of 65

Thread: FCA puts merger offer to Renault board

  1. #1
    GMI Staff Member Premium Member nadepalma's Avatar
    Join Date
    Jan 2003
    Location
    New Jersey
    Posts
    10,592
    Thanks
    338
    Thanked 1,765 Times in 892 Posts
    My Ride
    2007 Ford Fusion

    FCA puts merger offer to Renault board

    Fiat Chrysler puts merger offer to Renault board
    May 27, 2019
    Reuters via autonews.com

    PARIS -- Fiat Chrysler Automobiles has made a "transformative merger" proposal to French peer Renault, FCA said on Monday.

    The deal would create an automaker with a strong presence across key regions, automotive markets and technologies, generating 5 billion euros ($5.6 billion) in annual savings, FCA said in a statement.

    The "broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream," FCA said.

    Renault said in a statement Monday that its board had reviewed FCA's "friendly proposal" and had decided to "study with interest" the opportunity of such a business combination.

    CONTINUE AT LINK ABOVE
    "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!"

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    GMI Staff Member Premium Member nadepalma's Avatar
    Join Date
    Jan 2003
    Location
    New Jersey
    Posts
    10,592
    Thanks
    338
    Thanked 1,765 Times in 892 Posts
    My Ride
    2007 Ford Fusion

    Re: FCA puts merger offer to Renault board

    Lots to digest in here.

    As a standing "observation" in this industry, car company consolidations have a bigger track-record of failure than they do successes. The merger between Chrysler and Fiat seems to have been (mostly) successful as the resulting entity is far healthier (and rationalized) than the two companies from which it sprang.

    That said, one good example and successful experience is typically the exception to the rule --- and not the rule itself.

    In the case of FCA, both Fiat and Chrysler weren't delusional about their respective financial health, corporate product pipeline, and the need to cooperate. Sergio Marchionne, while an egomaniac in his own way, was a very talented and measured leader. He almost created the fusion of both companies by sheer will and stubbornness.

    Those kinds of leaders are hard to find; and they don't grow on trees. Does this new paradigm even have someone of Marchionne's personality and gravitas on hand to foster such a transformation?

    Renault has their own problems within the Renault-Nissan-Mitsubishi Alliance, of course, and there's nothing to say that Renault's board will go along with the transaction.

    That said, this could potentially give Renault a viable "out" if the Alliance goes south and they are forced to disengage from Nissan-Mitsubishi.

    Of course, any consolidation between FCA and Renault could also re-balance the equation with Nissan and Mitsubishi. Though merger discussion between Nissan and Renault have died down after Goshn's fall from grace, it's still simmering on the back burner. Though Renault has the advantage on paper, there's no hiding that Nissan (and now Nissan-Mitsubishi) are the larger, more profitable entity. If Renault (and the French Government) were looking to "counter" that reality, then an alignment with FCA could add additional "weight" in Renault's favor.
    Quote Originally Posted by autonews.com
    The transaction will be structured as a 50-50 ownership through a Dutch holding company, FCA said, adding that it would give Renault investors an implied premium of about 10 percent. After payment of a 2.5 billion-euro ($2.8 billion) special dividend to FCA shareholders, each group would receive 50 percent of the combined entity in new stock.

    Exor, Fiat's founding Agnelli family holding, is set to become the single largest shareholder in the combined entity. The new company would be chaired by John Elkann, head of the Agnelli family that controls 29 percent of FCA, sources familiar with the deal talks told Reuters. Renault Chairman Jean-Dominique Senard would likely become CEO, one said.
    Seems like a good "political" solution to any tie-up (if this is all true). One company doesn't dominate the other. FCA's current "owner" (the Agnellis) gets to be the "major" shareholder of the newer, larger entity. The Renault side of the equation gets to keep the CEO seat (which I'm sure Manley will gladly give up if it means bigger things for him at Exor or as Chairman of the combined Dutch entity).

    Quote Originally Posted by autonews.com
    Renault and FCA built about 8.7 million cars last year, which would vault the pair past Hyundai Motor Group and General Motors. That’s still behind the world’s two biggest automakers, Volkswagen Group and Toyota Motor Corp., which both topped 10 million vehicles last year. Renault’s existing alliance, including numbers from partners Nissan and Mitsubishi, also reached this milestone.

    The merger would give Renault access to the North American market, while FCA would gain clout in Russia, the French carmaker’s second-biggest market with its AvtoVaz unit, which builds Ladas.
    Seems like good synergies in size, scope, and industrial footprint; without any major overlap --- at least in terms of FCA and Renault. Once you add in Mitsubishi and Nissan back into the equation, it might make for some interesting infighting.
    Last edited by nadepalma; 05-27-2019 at 02:01 PM.
    "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!"

  4. The Following User Says Thank You to nadepalma For This Useful Post:

    Z Fury (05-28-2019)

  5. #3
    2.4 Liter SIDI ECOTEC
    Join Date
    Nov 2013
    Posts
    247
    Thanks
    198
    Thanked 247 Times in 101 Posts

    Re: FCA puts merger offer to Renault board

    Maybe they will see this as an opportunity to get access to the North American market, now that gas prices are going up? Although, with the demise of the sedan, they wont gain much traction.Also, unfortunately for them, Renaults are not really known for they reliability.

  6. Remove Advertisements
    GM Inside News
    Advertisements
     

  7. #4
    4.6 Liter Northstar V8 Mentat Bashar's Avatar
    Join Date
    Mar 2011
    Location
    Air Capital of the World
    Posts
    1,976
    Thanks
    790
    Thanked 673 Times in 400 Posts
    My Ride
    2004 Accord Coupe' V6 6spd

    Re: FCA puts merger offer to Renault board

    A merger of equals again?
    "I do not care about inequality because I'm not envious. I care about poverty."

    Apostrophes: Hidden Content

    Spelling: Hidden Content

  8. #5
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    28,996
    Thanks
    4,447
    Thanked 6,350 Times in 3,094 Posts
    My Ride
    2013 Equinox V6| 2013 Traverse

    Re: FCA puts merger offer to Renault board

    This is a merger of losers. I would say, Ford and GM taking each a 25% stake in FCA would be a better option,

  9. The Following User Says Thank You to mbukukanyau For This Useful Post:

    Greg Burr (05-28-2019)

  10. #6
    6.2 Liter LS9 Supercharged V8
    Join Date
    Apr 2005
    Posts
    8,519
    Thanks
    928
    Thanked 1,380 Times in 802 Posts

    Re: FCA puts merger offer to Renault board

    If and it's a big "if" Renault accept the deal, how Peugeot-Citroen would reply to this?

  11. #7
    2.4 Liter SIDI ECOTEC DequindreToo's Avatar
    Join Date
    Nov 2017
    Posts
    412
    Thanks
    809
    Thanked 400 Times in 178 Posts
    My Ride
    2016 Buick Regal Turbo

    Re: FCA puts merger offer to Renault board

    When the disastrous "merger of equals" took place between Diamler and Chrysler, did Chrysler have equal representation on the subsequent DiamlerChrysler Board?

    On paper, this Renault-FCA seems to be more in the spirit of a true "merger of equals". The interesting part is that it seems to leave Nissan out in the dust. If FCA goes through with this, Nissan will end up a much weaker brand in North America.

  12. #8
    Chevrolet VOLT
    Join Date
    Feb 2005
    Location
    Dandenong (Melbourne) Australia
    Posts
    10,111
    Thanks
    945
    Thanked 728 Times in 532 Posts
    My Ride
    1999 Ford Fairmont Wagon

    Re: FCA puts merger offer to Renault board

    At least Fiat and Chrysler have experience at such a tie up. I am sure Chrysler learned from the previous tie up too so maybe this has a chance of working. It will of course cost jobs.

  13. #9
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    28,996
    Thanks
    4,447
    Thanked 6,350 Times in 3,094 Posts
    My Ride
    2013 Equinox V6| 2013 Traverse

    Re: FCA puts merger offer to Renault board

    Quote Originally Posted by Stéphane Dumas View Post
    If and it's a big "if" Renault accept the deal, how Peugeot-Citroen would reply to this?
    They are currently trying to take Land Rover off Tata’s hands

  14. The Following 2 Users Say Thank You to mbukukanyau For This Useful Post:

    Greg Burr (05-28-2019),Stéphane Dumas (05-27-2019)

  15. #10
    News Contributor BlackGTP's Avatar
    Join Date
    Jul 2008
    Location
    Connecticut
    Posts
    13,266
    Thanks
    4,784
    Thanked 6,979 Times in 3,614 Posts
    My Ride
    2013 Cadillac ATS - Black

    Re: FCA puts merger offer to Renault board

    In the 1990's, who would've thought Chrysler would have had so many different masters by 2019 - Chrysler, Mercedes, Cerberus, FCA and possibly Renault (yes, I know we don't know who will actually be in control at this point)....

  16. #11
    6.2 Liter LS9 Supercharged V8
    Join Date
    Apr 2005
    Posts
    8,519
    Thanks
    928
    Thanked 1,380 Times in 802 Posts

    Re: FCA puts merger offer to Renault board

    Quote Originally Posted by mbukukanyau View Post
    They are currently trying to take Land Rover off Tata’s hands
    If that attempt to take Jaguar-Land Rover from Tata fails, I wonder if they have a "plan B"?

  17. #12
    2.4 Liter SIDI ECOTEC DequindreToo's Avatar
    Join Date
    Nov 2017
    Posts
    412
    Thanks
    809
    Thanked 400 Times in 178 Posts
    My Ride
    2016 Buick Regal Turbo

    Re: FCA puts merger offer to Renault board

    Quote Originally Posted by BlackGTP View Post
    In the 1990's, who would've thought Chrysler would have had so many different masters by 2019 - Chrysler, Mercedes, Cerberus, FCA and possibly Renault (yes, I know we don't know who will actually be in control at this point)....
    Chrysler has been moving from one crisis to the next since at least the 1970's.

  18. The Following 5 Users Say Thank You to DequindreToo For This Useful Post:

    Andrew L (05-28-2019),BlackGTP (05-28-2019),buildacariwant (05-27-2019),Evo69 (05-28-2019),Greg Burr (05-28-2019)

  19. #13
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    28,996
    Thanks
    4,447
    Thanked 6,350 Times in 3,094 Posts
    My Ride
    2013 Equinox V6| 2013 Traverse

    Re: FCA puts merger offer to Renault board

    Quote Originally Posted by Stéphane Dumas View Post
    If that attempt to take Jaguar-Land Rover from Tata fails, I wonder if they have a "plan B"?
    They will have to come begging Mother Barrah to take them over. Mother’s single focus on Technology and profit might not be a bad idea after all

  20. The Following User Says Thank You to mbukukanyau For This Useful Post:

    Stéphane Dumas (05-28-2019)

  21. #14
    5.3 Liter Vortec V8
    Join Date
    Jun 2016
    Posts
    1,428
    Thanks
    541
    Thanked 1,242 Times in 632 Posts
    My Ride
    E93, STS, MX5, CRV

    Re: FCA puts merger offer to Renault board

    I understand the need for consolidation but the thought of this disgusts me.
    "The Artist Formerly Known As Jesda"

  22. The Following 2 Users Say Thank You to jesda1 For This Useful Post:

    Greg Burr (05-28-2019),NoStopN (05-28-2019)

  23. #15
    6.2 Liter LS9 Supercharged V8 richmond2000's Avatar
    Join Date
    Nov 2009
    Location
    Winterpeg
    Posts
    8,327
    Thanks
    8,635
    Thanked 1,492 Times in 1,079 Posts
    My Ride
    2014 RAM 1500 HEMI

    Re: FCA puts merger offer to Renault board

    I would rather FCA "dance" with NISSAN + MITSUBISHI as both NISSAN and MITSU are advanced in the EV space as far as I know renault brings little to the table except sedans and another "second tier" Euro brand for the Euro market

  24. The Following User Says Thank You to richmond2000 For This Useful Post:

    Neanderthal (05-28-2019)

  25. Remove Advertisements
    GM Inside News
    Advertisements
     

Page 1 of 5 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2