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Old 29th May 2019, 12:35   #16
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

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Originally Posted by GTO View Post
With due respect to Mr. Mahindra who I admire, he would be in over his head managing the enormously large Renault-FCA group. I hope you were joking.

Here are two interesting articles on the merger. First, Peugeot left behind in the M&A dust. Then, how Nissan is getting a cheap ride.
Actually, I wasn't joking. I know Anand Mahindra reasonably well to be able to state with some degree of certainty that he will be well suited for this role. However, I also know he will never accept something like this, since his vision is to challenge the global giants, and not steer one of them.
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Old 29th May 2019, 17:09   #17
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After wrestling Ghosn out, Nissan may not want the French in anymore. However, I dont see too much synergy
I was not too far off the mark!

https://jalopnik.com/nissan-might-ha...elf-1835060715

Quote:
Originally Posted by GTO View Post

Here are two interesting articles on the merger. First, Peugeot left behind in the M&A dust.
Fiat is too much of a basket case for Peugeot to take on. At the most PSA would want the SUV portfolio. Wait a minute, there's JLR..maybe!

Last edited by ajmat : 29th May 2019 at 20:00.
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Old 29th May 2019, 18:31   #18
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

The purpose of such mergers has little to do with the brands themselves. It has to do with scale economies in the backend as well as r&d expenses, regulatory compliance costs plus geographical and market segment-wise diversification. This last is essential for survival since recessions if not 2008 like systemic crises DO occur, in fact will reoccur shortly.

FCA is supremely complementary to say Renault, PSA or even say Hyundai-Kia. Only profitable auto company in Latam, eminently white space global growth-capable with good margins brands in Jeep, Maserati, Alfa Romeo and Ram/FiatProfessional, FIAT brand deliberately attenuated in Europe though not LatAm only to profitable 500 and Panda family, needy of CAFE etc compliance cost relief, volumes large enough in Europe, N and S America to hugely aid scale economies for expensive new investments for everyone in ev, IT and autonomous driving.

For this reason of eminent complementarity: imo this will not be the last of the mergers fca or rather FIAT/Agnelli family accomplish. First Chrysler Jeep et al, now Renault, and once the next global recession sets in: another one (Nissan? GM?...)

I.e., as per the dark vision of and for the automotive industry of the great Sergio Marchionne.

Last edited by desdemona : 29th May 2019 at 18:35.
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Old 30th May 2019, 08:50   #19
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

New York Times uses a meme to talk about the merger.

Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out-image1.jpeg
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Old 3rd June 2019, 07:24   #20
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

FCA revises Renault merger offer in a bid to persuade French government

If approved, the combined company would be headquartered near Paris.

Quote:
Fiat Chrysler is discussing a Renault special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the car makers
Quote:
FCA had proposed locating the combined group’s operational head office in a neutral city, most likely London, but has now indicated readiness to base it in the greater Paris area, meeting a key French government demand
Quote:
The French government is also likely to be granted a seat on the board to reflect its 7.5 percent stake in the merged company
Quote:
Nissan, whose matching 15 percent stake in its French alliance partner will also be diluted to 7.5 percent of the new group, receives a board seat
Quote:
Guarantees to maintain Renault's French blue-collar jobs and industrial sites would also be extended to four years from the two initially proposed under the compromise being discussed

Link
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Old 6th June 2019, 07:09   #21
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

FCA withdraws the Renault merger proposal.

American-Italian group will not continue to pursue a partnership with the French manufacturer, citing 'political conditions' as the main barrier.

Link

Last edited by volkman10 : 6th June 2019 at 07:11.
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Old 6th June 2019, 15:50   #22
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

Renault Nissan is already in a mess with latest update that the French Government has also gone against Carlos Goshen and wants to prosecute him for the US$ 11 million misuse of funds.

It is good for FCA to stay away from getting into part of the internal fight / allegations that may follow in next couple of months.
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Old 6th June 2019, 16:11   #23
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Default re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

On an initial note, it is tough to digest why a behemoth like Fiat- Chrysler with a vehicle on every platform and self sustaining engines and advanced technologies with worldwide presence goes door to door for a merger. Even VW cannot build a Dodge Challenger (haters gonna hate). If the company still has a problem, they need to start looking internally.

If they really need synergy, there are a lot of small car companies like Mazda, Subaru and Isuzu, who have been previously used by Ford and GM for their advantage and then thrown away.

While the balance sheet may show signs of weaknesses, the Renault-Nissan-Mitsubishi alliance is currently in a family feud which doesn't show any signs of cooling down. The merger requires an up and coming auto major rather than a similar company.

Why not look at a merger with Tata (JLR), Mahindra(Ssangyong Pininfarina), Geely (Volvo,Proton, Lotus) or SAIC (MG motors) instead?
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Old 8th June 2019, 08:03   #24
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Default Re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

Sharing a couple of articles that I found really interesting.

How the merger crashed

A perspective worth reading

Via Bloomberg

IMHO, it was John Elkann's impatience, French politicians, the clash of cultures (this merger had Italians + French + Japanese + Americans coming together) and of course, thorny Nissan that ruined the deal.
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Old 19th June 2019, 17:52   #25
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Default Re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

Quote:
Originally Posted by GTO View Post
it was John Elkann's impatience, French politicians, the clash of cultures (this merger had Italians + French + Japanese + Americans coming together) and of course, thorny Nissan that ruined the deal.
After some more reading on the same, I think Renault was absolutely justified in asking for more time. And it's not like they wanted another year to think about it - just FIVE DAYS. After all, a key partner (Nissan) was notified at the nth hour and their position was unclear. Sadly, Elkann was too impatient & his inexperience showed.
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Old 3rd August 2019, 20:35   #26
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Default Re: Renault & Fiat-Chrysler initiate merger talks. EDIT: Fiat pulls out

Renault is likely to lower its stake in Nissan. Hope to revive the Fiat deal.

Quote:
Nissan wants Renault to reduce its 43.4% stake in the Japanese auto company, the emails show, a move one of the people said is aimed at resolving longstanding tensions between the two car companies over the structure of their globe-spanning alliance.
Quote:
Top executives at Renault are hoping changes to the shareholding structure will allay Nissan’s concerns and clear the way to restart merger talks with Fiat Chrysler
Quote:
The merger proposal fell apart in June after Nissan said it wouldn’t back a tie-up and the French government asked to delay a board vote on the matter. Fiat Chrysler Chairman John Elkann got frustrated and walked away,
Link

Last edited by volkman10 : 3rd August 2019 at 20:43.
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