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- Fiat Withdraws Deal to Merge with Renault
Fiat Withdraws Deal to Merge with Renault
Fiat Chrysler
withdrew its proposal to merge with French automaker Renault due to the lack of
political conditions that would ensure a successful deal.
The talks between the
two automobile companies have been going on since May and after a series of late-night
meetings, the French government requested a vote for or against the merger to
be delayed.
The French government
owns 15 percent of Renault and as it did not see assurances on a number of
matters, including job security, it hoped for more time to complete the merger.
This, along with the fact that the government wanted to continue to have a key
role in governing the company, lead Fiat to take back its proposal.
Fiat said this
morning that it “has become clear that the political conditions in France do
not currently exist for such a combination to proceed successfully.”
The merger would
create the world’s third largest carmaker, behind Volkswagen and Toyota. It would allow both companies to share the
costs of developing new technologies, including electric vehicles and autonomous
driving systems, according to CNN.
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