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Fiat Chrysler proposes merger with French carmaker Renault

Fiat Chrysler proposes merger with Renault
Posted: 2:07 AM, May 27, 2019
Updated: 2019-05-27 02:19:33-04
5-27 FCA proposes merger with Renault

PARIS (AP) — Fiat Chrysler is proposing a merger with French carmaker Renault aimed at saving billions of dollars for both companies.

Fiat Chrysler Automobiles said in a statement Monday that the merged company would be 50 percent owned by FCA shareholders and 50 percent by Renault shareholders. Renault's board is meeting outside Paris on Monday morning about the possible merger. The companies have been in discussions for weeks, as major world carmakers seek ways to save money amid the huge costs of pivoting the industry to electric and autonomous cars.

Renault is already in an alliance with Japan's Nissan and Mitsubishi, but the partnership has been troubled since the November arrest of joint chief Carlos Ghosn.

The French government, which owns 15 percent of Renault, is cautious about the new merger idea.