FCA Blames French State for Failed Renault Merger
Fiat Chrysler has backed out of a proposed merger with Renault, blaming ‘political conditions’ in France, whose government owns a 15% share of Renault. A week ago, the companies were poised to form the world’s third-largest automaker.

A team led by French finance minister Bruno Le Maire was reportedly unable to win Nissan’s support for a merger between its factory alliance partner, France’s Renault, and the Italian-American Fiat Chrysler.
Photo by Thomas Bresson via Wikimedia Commons
(Bobit) — Fiat Chrysler Automobiles and its chairman, John Elkann, have pulled a $35 billion offer to merge with Groupe Renault. First made public last week, the proposal, if consummated, would have formed the world’s third-largest automaker.
Sources say talks fell apart Wednesday night after French finance minister Bruno Le Maire requested a six-day postponement of a vote among representatives of FCA, Renault, Renault’s alliance partner, Nissan, and the French government, which owns 15% of Renault.
After Nissan’s representatives abstained from voting, reports suggest, Le Maire held the French state’s vote and asked for more time to seek the endorsement of his Japanese counterparts. Elkann declined.
Renault executives pledged to continue to study the proposal. In a statement, FCA’s directors expressed gratitude to all involved parties but offered little indication the talks would continue anytime soon.
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties,” the statement reads, in part. “However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →