Fiat Chrysler has withdrawn its proposal to merge with French automaker Renault after "politics" apparently got in the way of the merger.
Fiat Chrysler Withdraws Its Proposal to Merge with Renault
Fiat Chrysler withdrew its proposal to merge with French automaker Renault today according to a new report by CNN, saying that it "has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."
Earlier today, Renault issued a statement saying that the French government had asked that it delay a vote on the merger, though it did not specify what--if any--objection the French government, which owns a 15% stake in Renault, had with the merger.
Last month, Fiat Chrysler offered the proposal to merge with Renault, which would have formed the 3rd largest automaker in the world, in an attempt to expand its manufacturing capacity to built next-generation electric vehicles. Fiat Chrysler had indicated that the merger would have produced a savings of more than $5 billion and that the merger would not result in plant closures, which was an important condition for the French government for its approval.
Renault has no major North American presence but is part of a major partnership with Japanese firms Nissan and Mitsubishi. Nissan and Renault both maintain significant ownership in one another, though as yet there is no indication that either Japanese partner objected to the proposed merger.