Renault delays decision on Fiat Chrysler
PARIS — Renault has delayed a decision on whether to merge with Fiat Chrysler, a deal that could reshape the global auto industry as carmakers race to make electric and autonomous vehicles for the masses.
The deal still looks likely, but faced new criticism Tuesday from Renault’s leading union and questions from its Japanese alliance partner Nissan. The French government is also putting conditions on the deal, including job guarantees and an operational headquarters based in France.
The French carmaker’s board will meet again at the end of the day Wednesday to “continue to study with interest” last week’s merger proposal from Fiat Chrysler Automobiles, Renault said in a statement.
A Renault board meeting Tuesday to study the deal was inconclusive. The company didn’t explain why, but a French government official said board members don’t want to rush into a deal and are seeking agreement on all parts of the potential merger.
The official, who spoke on condition of anonymity, told The Associated Press the conditions outlined by France’s finance minister still “need to be met.”
France and Italy are both painting themselves as winners in the deal, which could save both companies $5.6 billion a year. But workers worry a merger could lead to job losses.
The big loser may end up being Japan’s Nissan, whose once-mighty alliance with Renault and Mitsubishi is on the rocks since star CEO Carlos Ghosn’s arrest in November.
Nissan CEO Hiroto Saikawa cast doubt Tuesday on whether his company will be involved in a Renault-Fiat Chrysler merger — and suggested adding Fiat Chrysler to the looser Renault-Nissan-Mitsubishi alliance instead.
