PHOTO PHOTO: Fiat Chrysler and Renault logo are in advanced merger negotiations of the two car manufacturers.
Sources claim that the negotiations that have been taking place over the past few weeks have increased their speed in recent days and may lead to a communication on a merger or partnership tomorrow.
Chief executives of both car manufacturers clearly made it clear that they are open to partnerships with other carmakers, giving them economies of scale to further reduce the cost of both production and vehicle development funds. This move can be particularly useful in Europe, where total car sales are under pressure.
During the last call to Fiat Chrysler, Chief Executive Officer Mike Manley was asked about the possibility of merging with another car manufacturer. "In the past, we have clearly stated that we want to be proactive and proactive to develop our business and improve the value for our shareholders," Manley told analysts. "We enter an environment where there will be opportunities." Meanwhile, with former Chief Executive Officer Carlos Ghosn, Renault was increasingly interested in a full merger with Nissan, its alliance partner who achieved mixed results. When the two carmakers first set up their alliance in the late 1
The partnership between Fiat Chrysler and Renault will also help car manufacturers to pool their resources for the development of electric and stand-alone vehicles. Renault's EV program is considered more advanced than Fiat Chrysler, but none of the carmakers are considered to be the leader in electric vehicles.
The Fiat Chrysler spokesman will not comment when it comes to CNBC.
Megan Reeder of CNBC contributed to this report.