Merger Talks Between Fiat Chrysler & Renault, Nissan Mitsubishi Alliance Heat Up
The dramatic changes in the auto industry – from the precipitous rise of electrics, ride-sharing and self-driving vehicle technology – are the major driver of current merger talks between Fiat Chrysler Automobiles (FCA) and the Renault Nissan Mitsubishi Alliance, which if successful would create the third largest automotive company in the world.
Though most analysts believe that population growth, emerging markets and new technologies will sustain and even expand the auto industry in terms of total unit production and sales, it is clear that dozens of independent car-makers all producing their own engines, vehicle architecture and tech systems, is becoming a morass of money wasting redundancy.
Though FCA has eagerly courted prospects for the past decade, the talks with Renault appear to be the most serious yet of a mega-merger. Officials of the French company are consulting their 20-year partner Nissan, which is reportedly reticent about this combination since it would reduce its independence at a time when it is increasing market share and still globally dominant in overall electric sales, as well as safe and responsible self-driving tech.
Meanwhile minority Alliance partner Mitsubishi stands to gain from this merger.