Fiat Chrysler, the group behind popular brands such as Jeep, Dodge, Ram and Alfa Romeo, was the seventh most sizeable automobile group in the world last year, selling 4.8 million vehicles as a whole. Adding Renault’s 3.88 million cars sold in 2018 to that total would create the third largest player in the industry led by Volkswagen and Toyota.

 

As reported by FCA’s proposal, the merger could result in synergies of more than €5 billion per year, not predicating on plant closures. “Combining the businesses will bring together complementary strengths”, the proposal reads, referring to geographic and segment coverage as well as to FCA’s capabilities in autonomous driving and Renault’s expertise with regards to electric vehicles. Renault’s Board of Directors is reserved to discuss about the proposal on Monday, and then the company will issue a press release. Shareholders reacted positively to the news, with both companies’ shares up more than 10 percent in European trading on Monday.

 

This article is originally posted on TRONSERVE.COM