(NBC) – Fiat Chrysler proposed Monday to merge with France’s Renault to create the world’s third-biggest automaker.
The merger would combine the two companies’ investments in the race to make new electric and autonomous vehicles.
The merged company would reshape the global auto industry.
It would produce some 8.7 million vehicles a year, leapfrogging General Motors and trailing only Volkswagen and Toyota.
It has been ten years since the Fiat-Chrysler alliance began following Chrysler’s bankruptcy during the last big recession.
Fiat Chrysler’s chairman said no factories would be closed in the event of the merger.
Under the proposed merger, each side’s shareholders would split ownership in the new company.
Shares of both companies initially jumped more than 10% on news of the offer.
International business analyst Matteo Caroli said, “We have the very positive reactions of the markets this morning, for FCA, as well as for Renault, they are doing very well in the markets, so the investors seem to appreciate the project.”
Professor Caroli said Renault’s existing agreements with Nissan and Mitsubishi could help the merged group become more competitive in the Chinese market.
© 2024 KOBI-TV NBC5. All rights reserved unless otherwise stated.