Renault, Fiat Chrysler to announce alliance talks: Sources

Renault, Fiat Chrysler to announce alliance talks: Sources

FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo
FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo, Egypt, May 19, 2019. Picture taken May 19, 2019. REUTERS/Mohamed Abd El Ghany/File Photo

PARIS: Fiat Chrysler is likely to make an announcement about its talks on a potential tie-up with rival Renault on Monday (May 27), two sources told Reuters, while the board of the French carmaker will meet first thing.

One of the sources said the announcement could provide some concrete although initial details but added the situation was still "fluid".

Fiat Chrysler and Renault are in talks on a comprehensive global tie-up that could address some of the main weaknesses of both carmakers, two sources with knowledge of the discussions told Reuters on Saturday.

A separate source with direct knowledge of the situation confirmed that the Renault board will meet on Monday morning at 8.00am local time (0600 GMT) to discuss the issue.

The meeting was first reported by French newspaper Le Figaro.

Pressure for consolidation among car makers has grown with the challenges posed by electrification, tightening emissions regulations and investment-heavy technologies for connected and autonomous vehicles.

Fiat Chrysler and Renault together would have a combined market capitalisation approaching €33 billion (US$37 billion).

Source: Reuters/zl

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