LONDON -- Fiat Chrysler Automobiles is in advanced discussions to forge extensive ties with Renault, the Financial Times reported on Saturday, citing multiple people informed on the talks.
The newspaper said the automakers were seeking to join forces to tackle structural challenges facing the global auto industry. The Wall Street Journal posted a similar story on Saturday afternoon.
An agreement might ultimately lead FCA to join the Renault-Nissan-Mitsubishi Alliance in the future, sources told the newspapers, while also warning that this outcome would mean taking a complicated path that would involve winning over Nissan.
FCA has also been holding cooperation talks with PSA Group about sharing platforms but the talks with Renault have moved beyond sharing technology and have advanced faster than those with PSA, the Financial Times said.
The discussions with Renault are ongoing and could still fall apart, the sources told Financial Times, cautioning that a number of structures and options are being considered. It is unclear to what extent Nissan has been involved so far in the discussions, the paper said.
Reports about FCA's discussions with PSA began emerging in March.
PSA said in a statement to Bloomberg that it is open to “opportunities that would create value on a long-term basis,” but based on 2018’s financial results, “there is no hurry to finalize any partnership,” according to an email statement.