The prospect of a merger between French automaker Renault and Italian-US auto giant Fiat Chrysler was revealed on Monday (May 27).
The 50-50 combination offered by Fiat, which sells 4.8-million vehicles a year, would create the world'sthird-biggest automaker by adding Renault's sales of 3.8-million.
And with the sales by Renault's Japanese partners Nissan (5.6-million) and Mitsubishi (1.2-million), the group would become a globe-spanning powerhouse selling nearly 16-million cars a year - or one out of six sold worldwide.
READ: WATCH - Old partner Nissan left sidelined by Renault-Fiat merger
If the two auto groups joined they would become the 3rd largest global OEM with a potential 8.7-million in vehicle sales. Geographically, based on FCA and Groupe Renault’s 2018 global sales, the combined company would be No.4 in North America, No.5 in EMEA and No.1 in Latin America.
What are the goals for the proposed merger? FCA answers below:
1 Combined business to be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders – balanced governance structure and majority of Board of Directors being independent
2 Combination would create the 3rd largest global OEM with 8.7m vehicle sales and a strong market presence in key regions and vehicle segments
3 Broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream
4 Combined company would be a world leader in the rapidly-changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving
5 No factory closures as a result of the combination
6 In excess of €5-billion estimated annual run rate synergies incremental to existing Renault-Nissan-Mitsubishi Alliance synergies
7 Strong combined balance sheet allowing for flexible capital allocation and robust dividend policy
8 Significant benefits to the other Alliance partners including €1-billion of additional estimated run rate synergies
Read FCA's official statement below: