FCA Proposes a Merger with Renault
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Interesting article on FCA "merger" at autoextremist
First of all, how crazy is the FCA saga getting? When the merger between FCA and Renault – you know, the one that everyone was so certain of – blew up after FCA Chairman John Elkann walked away from the deal, the hand-wringing was only just beginning. There are so many more dimensions to the story that it’s dizzying. There’s Renault, but then there’s the French government too. Those two players alone are enough to give any notion of a merger a stiff headache. And then there’s Nissan, whose nose seems to be permanently out of joint because, in the parlance of Rodney Dangerfield, they just can’t get no respect.
Now there are rumors of the talks being revived, with Nissan wanting a much larger cut of the action. One thing that hasn’t changed in all of this is that the clock is ticking on FCA. Beyond Jeep, Ram Trucks and its muscle/police cars the company is clearly not positioned for the future because it is woefully lacking in advanced technology. And the whole idea of merging with another automotive partner is designed to fix that.
Make no mistake, I believe a deal will be made, simply because FCA has no other choices – or interested partners – and time is running out. Any merger with any company will be fraught with problems and unforeseen challenges, and the sooner FCA can get a deal and set about figuring things out with its new partners, the better off it will be. That’s not to say things will go swimmingly well, because they rarely do with heavyweight corporate egos in play. But at this point FCA has no choice; the company must make a deal for its long-term survival.
Link
First of all, how crazy is the FCA saga getting? When the merger between FCA and Renault – you know, the one that everyone was so certain of – blew up after FCA Chairman John Elkann walked away from the deal, the hand-wringing was only just beginning. There are so many more dimensions to the story that it’s dizzying. There’s Renault, but then there’s the French government too. Those two players alone are enough to give any notion of a merger a stiff headache. And then there’s Nissan, whose nose seems to be permanently out of joint because, in the parlance of Rodney Dangerfield, they just can’t get no respect.
Now there are rumors of the talks being revived, with Nissan wanting a much larger cut of the action. One thing that hasn’t changed in all of this is that the clock is ticking on FCA. Beyond Jeep, Ram Trucks and its muscle/police cars the company is clearly not positioned for the future because it is woefully lacking in advanced technology. And the whole idea of merging with another automotive partner is designed to fix that.
Make no mistake, I believe a deal will be made, simply because FCA has no other choices – or interested partners – and time is running out. Any merger with any company will be fraught with problems and unforeseen challenges, and the sooner FCA can get a deal and set about figuring things out with its new partners, the better off it will be. That’s not to say things will go swimmingly well, because they rarely do with heavyweight corporate egos in play. But at this point FCA has no choice; the company must make a deal for its long-term survival.
Link
