Renault and Fiat Chrysler are about to take a massive step which could result in global leadership. Reportedly the automakers are about to combine significant parts of their businesses. The alliance would also include two other carmakers, Mitsubishi and Nissan. On Saturday, two publishers The Wall Street Journal and The Financial Times had published reports revealing the far-reaching cooperation. A partnership would assist the automakers better address the challenges facing carmakers along with smoother calls for new vehicles. The companies have been in discussions over the last few weeks. But those talks have grasped recently. Thus the automakers may announce the news of tie-up today itself.
Finally, Fiat Chrysler may participate in the alliance of Renault-Nissan-Mitsubishi. It is the association established in 1999 when the automobile industry went through a period of primary concern. While Carlos Ghosn, former CEO Renault, was progressively excited in order to merge with Nissan. In the 1990s, the alliance assisted Nissan in reducing loses and finally become an extremely profitable carmaker. Presently, there is increasing stress between the automakers after the arrest and imprisonment of Mr Carlos. Japanese lawmakers have claimed the former executive with many crimes including underreporting of salary. He was bailed the second time from Tokyo jail. Now the former Nissan executive is preparing for trial. Although the reports did not reveal the level of Nissan’s participation in the ongoing talks.
Fiat Chrysler is one of the famous U.S. automakers. The Jeep, Ram trucks and commercial vans are some of its popular vehicles. Apart from this, the company has a $20 billion market cap. An agreement has significant consequences for both Fiat Chrysler and Renault. Besides, the new alliance would enable Fiat Chrysler to secure the electric vehicle and other new techs from its partner. The partnership could also help the carmakers combine resources for building electric and autonomous vehicles. All in all, the involvement of Fiat Chrysler in the alliance could make it the world’s largest automobile manufacturer.