The rumors of a rapprochement between the two are becoming more and more insistent Renault And Stellantiswith some rumors talking about one fusionalthough it seems more plausible a industrial agreement to reduce production costs, especially for electric carsand counter the growing advance Chinese in the sector.
There is also talk of a possible agreement between Stellantis and BMW. Meanwhile, Stellantis shares on the stock market suffered a collapse, closing at -14.7%at its lowest since October 2022, after a cut to estimates for 2024.
Renault Stellantis merger
The main promoter of the merger between Stellantis and Renault appears to be the French president Emmanuel Macronconsidering that the French state holds a 15% share of Renault and 6.1% of Stellantis. This political connection highlights the French government’s interest in strengthening the position of domestic automotive companies.
The hypothesis of an agreement raises questions and generates interest. On the one hand, a European hub similar to a “Airbus” of the car; on the other, the alliance would have a strong French component, but the presence of the Italian manager Luca de Meo could mitigate this aspect.
The possible merger would involve the 15 Stellantis brands and the Renault brands (3 in total with Alpine), with 18 marks and factories spread globally. There could be someone at the helm of the mega group Luca de Meocurrent CEO of Renault, while the candidacy of Carlos Tavares appears the least likely, since his contract expires in 2026 and he could be replaced as head of Stellantis.
Renault Stellantis opportunities and concerns
The hypothesis of a merger between Renault and Stellantis has been raised due to the crisis in the sectorwith the need for collaborations to reduce costs in the production of electric cars and face competition from Chinese vehicles. In any case, the merger would be unbalanced: Stellantis has a capitalization of 68 billion euros and a turnover of 190 billioncompared to 10.5 billion e 53 billion by Renault.
Furthermore, these rumors are arousing concern among workersparticularly in Italian factories, already affected by crises and layoffs. While mergers often involve cutbacks, the current alternative could be even more damaging, as recent evidence has shown Volkswagen plans to close two factories and lay off 15,000 employees.
Renault-Stellantis agreement and merger, what is true?
The first rumors about the merger between Fiat Chrysler Automobiles (FCA) and Renault date back to 2019. However, John Elkann officially denied to Reuters the existence of merger plans with other manufacturers, stating: “There is no plan being studied.”
Furthermore, any merger must be vetted by the EU Commission to avoid abuses of a dominant position and ensure compliance with competition rules.
Further details may emerge on October 15th during the Paris Auto Showwhere one is scheduled round table with Luca de Meo, Carlos Tavares and Oliver ZipseCEO of BMW. This meeting is therefore very important to understand the direction that the European automotive sector will take.
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