French automaker Renault has officially confirmed receiving a proposal from the FCA concern for a merger on equal terms. As reported in a statement from the brand's press service, the Renault board of directors will convene on Monday morning, May 27, to consider the possibility of concluding the deal.
The Italian-American concern FCA has also confirmed the upcoming negotiations. They state that a production partnership, which may later develop into a full merger of the companies, will help strengthen the positions of both manufacturers in key markets and provide significant savings in the creation of new models. According to estimates, annual savings could exceed five billion dollars.
At the same time, Bloomberg agency points out that at the initial stage of cooperation, the current partners of Renault — Japanese companies Nissan and Mitsubishi, as well as Russian AvtoVAZ — will not be included in the merged structure. However, it is not excluded that these enterprises may join the project at later stages.
