Listen: Fiat Chrysler, French Government And Renault discussed on Daily Detroit
"We mentioned Fiat Chrysler, is withdrawing its thirty five billion dollar proposal to merge with French, automaker Renault, the move comes just ten days after FCA first announced the proposal. It follows the Renault boards failure to reach a decision on the proposal, after it sighted, the French government's request to postpone a vote. The Wall Street Journal also reported that Nissan's two representatives on the Renault board also objected, if you're wondering what the French government and Nissan has to do with all of this. Well, Renault owns a big chunk of Nissan and the French government owns a fifteen percent stake in Renault Fiat Chrysler, is board met Wednesday evening and voted to withdraw its proposal with immediate effect saying, although it remains convinced of the compelling rationale for the merger quote, it has become clear that the political conditions in France, do not currently exist. For such a combination to proceed successfully. Separately. President Trump said he may Levy tariffs on all imported goods from Mexico starting Monday because of the surgeon legal immigration across the southern border. It's a move that has huge ramifications for the auto industry and consumers. Spend talked with Kristen g check of the center fraud, motive research for more perspective. Here's that conversation. Fiat Chrysler, has been trying unsuccessfully for years now to try and find a merger partner going back to other late CEO Sergio Mark Yoni. Remind us Kristen. Why is that Chrysler so eager to find a merger partner? Well, Chrysler is the smallest of the Detroit, three automakers in one of the smaller automakers in general, and they're looking to tie up with another automaker to help share some of the costs that they are going through for developing vehicle programs, and especially for new technologies like electric occasion and automating. Those are big giant bets being made by the biggest car companies and in order to compete. With that. You need a lot of vehicle volume to share that, that are in D cost to spread it across then, Fiat Chrysler, just doesn't have that kind of all ume right now globally. But if they, you know, marry up with someone they can share those big risky investments and have lower cost per unit, but to compete in this world, you've got to be on the forefront of both of those technologies given the complexity of the ownership of the Renault group, you know, considering its involvement with the French government, it's alliance with Nissan and Mitsubishi was this any surprise that this merger proposal didn't work out."