How France’s Intrusive Demands Quashed the Fiat-Renault Deal

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Thread: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

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    How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    How France’s Intrusive Demands Quashed the Fiat-Renault Deal
    Fiat Chrysler and Renault had been negotiating a merger proposal, but Fiat Chrysler pulled out of talks late Wednesday night.
    Credit Gianni Cipriano for The New York Times
    By Liz Alderman
    June 6, 2019
    nytimes.com

    PARIS — It was supposed to be a transformative merger in an industry facing intractable challenges. But Fiat Chrysler and Renault ran headlong this week into a familiar problem in France: the government itself.

    With the two companies edging toward a deal, officials in Paris played a role that comes naturally — safeguarding jobs and protecting Renault, a celebrated brand here. But in the end, the government infuriated both Fiat and Renault executives, who wanted to create a competitive new industrial giant free of state influence, according to two people with knowledge of the discussions.

    The merger appeared to be sealed after more than four hours of negotiations on Wednesday night at a marathon Renault board meeting in Paris. Then France’s finance minister, Bruno Le Maire, stunned those present with a message that he wanted to delay the vote for five days to consult in Tokyo with his Japanese counterpart about Nissan, Renault’s partner in a decades-old carmaking alliance, two people familiar with the discussions said.

    Less than 20 minutes after he heard of the request, John Elkann, the chief executive of Fiat Chrysler, quit the talks, these people said.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    A good read and some solid background on how government meddling may have doomed any union.

    It appears that the merger agreement is officially off, but that both companies are still (apparently) talking:

    Exclusive: FCA-Renault revival may hinge on Nissan stake cut

    As an aside, I'm surprised at how John Elkann reacted to the break down in talks. Pulling out of the merger due to the French government's meddling is either brilliant or arrogant (you could see it both ways).

    Either way, it appears the Agnelli scion has learned a thing or two from his mentors (which obviously include Sergio Marchionne, but also folks Harry Kissinger; and to a lesser extend, Warren Buffet).

    This move was very shrewd, and undoubtedly knocked the French government (and Renault's leadership) back on its heels a bit.

    Kudos to John.
    Last edited by nadepalma; 06-10-2019 at 09:50 PM.
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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    I'm SHOCKED!! SHOCKED! Not the French?!!
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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by nadepalma;7163571

    [B
    Exclusive: FCA-Renault revival may hinge on Nissan stake cut[/B]

    As an aside, I'm surprised at how John Elkann reacted to the break down in talks. Pulling out of the merger due to the French government's meddling is either brilliant or arrogant (you could see it both ways).

    Either way, it appears the Agnelli scion has learned a thing or two from his mentors (which obviously include Sergio Marchionne, but also folks Harry Kissinger; and to a lesser extend, Warren Buffet).

    This move was very shrewd, and undoubtedly knocked the French government (and Renault's leadership) back on its heels a bit.

    Kudos to John.
    I think John Elkann move is both brilliant and arrogant and we could add then Renault did a "road apple" in their pants thiking suddenly then FCA could check elsewhere at Pegeot, Hyundai, the Chinese or even....GM! Suddenly thinking their demands would had probably let a rival going to dance with FCA before Renault.

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    So he storms off like a 3 yr old when the French ask about Nissan, a major existing partner of Renault?? I never understood what FCA saw in Renault (beyond EVs) but I’d put this one down to arrogance not some sort of deep game. FCA has been openly courting partners for years.



    Meanwhile, we have our own ways of meddling with trans-border mergers:

    https://www.barrons.com/articles/com...rs-51556635683
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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by dannyg View Post
    So he storms off like a 3 yr old when the French ask about Nissan, a major existing partner of Renault?? I never understood what FCA saw in Renault (beyond EVs) but I’d put this one down to arrogance not some sort of deep game. FCA has been openly courting partners for years.



    Meanwhile, we have our own ways of meddling with trans-border mergers:

    https://www.barrons.com/articles/com...rs-51556635683
    We could also reverse the roles and wondering what Renault (and to a latter extent Nissan & Mitsubishi) see in FCA.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by Stéphane Dumas View Post
    We could also reverse the roles and wondering what Renault (and to a latter extent Nissan & Mitsubishi) see in FCA.
    Good point...but I suspect it's all that sweet Jeep/Ram cash!
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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by Stéphane Dumas View Post
    We could also reverse the roles and wondering what Renault (and to a latter extent Nissan & Mitsubishi) see in FCA.
    Trucks, Jeep, and broader access to the US market.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    FCA is the whore of the auto world.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    It's the French. Their unions go on strike if someone sneezes and doesn't use their brand of tissues.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by rmc523 View Post
    Trucks, Jeep, and broader access to the US market.
    Renault already has access to the US market via Nissan (and Mitsubishi to some extent) which also has Trucks and "rugged" vehicles like the Jeep brand. I see this only as a mechanism for Renault to remove itself from the alliance it has with Nissan and Mitsubishi and potentially into another one or become independent with no alliances...

    I don't see any value from FCA's perspective as there's just too much overlap. Yeah, Chrysler/Dodge could use some smaller vehicles but Renault hasn't had much success in the US (even with it's previous relationship ChryCo) and what about Alfa and Fiat??? Isn't much better with those brands, so, I see like for like from ChryCo's perspective.

    Submitting a proposal (and some tweets, facebook posts, etc.) isn't much overhead. Check it out yourself at FCA's site. A lot of legalize and high-level prognostications. There's a story behind this story...
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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Quote Originally Posted by GMOwner View Post
    Renault already has access to the US market via Nissan (and Mitsubishi to some extent) which also has Trucks and "rugged" vehicles like the Jeep brand. I see this only as a mechanism for Renault to remove itself from the alliance it has with Nissan and Mitsubishi and potentially into another one or become independent with no alliances...

    I don't see any value from FCA's perspective as there's just too much overlap. Yeah, Chrysler/Dodge could use some smaller vehicles but Renault hasn't had much success in the US (even with it's previous relationship ChryCo) and what about Alfa and Fiat??? Isn't much better with those brands, so, I see like for like from ChryCo's perspective.

    Submitting a proposal (and some tweets, facebook posts, etc.) isn't much overhead. Check it out yourself at FCA's site. A lot of legalize and high-level prognostications. There's a story behind this story...
    Overlap is exactly what you want because that's where biggest opportunities are for significant cost cutting. Europe is a difficult market and Renault and Fiat sharing everything would make both much more competitive.
    All you have to do is look at PSA and Opel, tremendous overlap and working out well for them so far.

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    Time to unbury and revive this thread.

    I saw that article from Automotive News via a post on Allpar forums.
    https://www.autonews.com/automakers-...al-report-says
    Renault and Nissan Motor Co. have held talks that would see Renault reduce its stake in the Japanese carmaker and help the French company restart merger discussions with Fiat Chrysler Automobiles, The Wall Street Journal reported.

    The sides are weighing plans under which Renault would cut its 43.4 percent holding in Nissan, a move meant to rebalance their global alliance, the Journal said, citing internal emails as well as people briefed on the talks. Any reduction of the stake would need approval from France, which owns 15 percent of Renault.

    A spokeswoman for Nissan declined to comment on the report. Representatives for Renault and the French government didn’t immediately respond to requests for comment.

    Merger talks between Fiat and Renault collapsed in June when Fiat’s controlling Agnelli family walked away from the deal as the French government sought more time to convince their unsupportive counterparts at Nissan.

    Talks to modify the alliance’s structure -- which are at an early stage -- began after the Renault-Fiat deal collapsed, the Journal reported. They could lead to an initial memorandum of understanding on the restructuring as soon as September, the newspaper said, citing emails.
    Last edited by Stéphane Dumas; 08-05-2019 at 03:42 PM. Reason: Adding a quote

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    Re: How France’s Intrusive Demands Quashed the Fiat-Renault Deal

    FCA will probably sell to Berkshire Hathaway or Amazon at this point.
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