Fiat Chrysler Automobiles is holding merger talks with the PSA Group that would create one of the world’s biggest car groups. The Financial Times has reported that the two firms have been in talks for several months over a merger. Both companies have now confirmed the talks. PSA issued a statement that said: “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aimed at creating one of the world’s leading automotive groups.” A similar statement from FCA read: “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles NV confirms there are ongoing discussions aimed at creating one of the world’s leading mobility groups. “FCA has nothing further to add at this time.” The potential merger would create a car giant worth around £40 billion and encompassing some of the world’s biggest car brands. FCA owns Fiat, Jeep, Alfa Romeo, Maserati, Ram, Lancia and Chrysler, while the PSA stable includes Peugeot, Citroën, DS and Vauxhall-Opel. FCA has been looking for a partner for some time, and earlier this year held extended talks with Group Renault over a possible partnership. But those talks broke down after the two firms could not reach an agreement. PSA boss Carlos Tavares led the purchase of Vauxhall-Opel and has been keen to expand the firm for some time, either through partnership or further acquisition. PSA is understood to have previously looked at buying Jaguar Land Rover, and has previously held talks with
Origin: PSA Group and Fiat Chrysler confirm merger talks
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FCA, Renault hoping merger talks will restart, report says
2018 Renault Twingo Executives at Fiat Chrysler and Renault-Nissan remain open to the idea that a merger deal could still happen, but they warn that conditions imposed by each side could hurt efforts to restart talks, The Wall Street Journal reported, citing people familiar with the situation.Renault executives are optimistic that the outcome of Nissans shareholder meeting this week will spur new merger talks with FCA as support for a deal still exists inside the French automakers headquarters near Paris, the newspaper said, citing people close to Renault.In addition, Nissan has not closed itself off to the possibility of an eventual deal, but would also like to reshape the alliance to allow for added flexibility and independence for each partner, the WSJ reported.Renault CEO Thierry Bollore said last week that there was nothing happening between the French automaker and FCA after the collapse of merger talks aimed at creating the worlds third-largest automaker.The merger discussions with FCA ended abruptly after the French government, Renaults most powerful shareholder, sought a delay to gain the explicit assent of Nissan. FCA blamed political conditions in France when it withdrew its proposal, and a signal from the French state that it would give up its sway over Renault would be necessary for a resumption of talks, people with knowledge of the situation have said. For Renault and the state, repairing the relationship with Nissan will take priority over a FCA deal, officials have said. France in particular views securing the Japanese automakers explicit backing as crucial for the success of an FCA-Renault combination.Despite the finger-pointing that followed the failed talks, Renault, FCA and France have left the door open for a possible deal as they brace for the costly changes sweeping the industry, such as developing electric and autonomous
Origin: FCA, Renault hoping merger talks will restart, report says
Renault and Fiat Chrysler reportedly in talks over tie-up
Fiat Chrysler Automobiles (FCA) and Renault are reported to be in ‘advanced discussions’ over a wide-ranging partnership, which could ultimately lead to the FCA Group joining the Renault-Nissan-Mitsubishi Alliance. The talks, first reported by the Financial Times and subsequently by Reuters, are focused on the potential for co-operation between FCA and Renault, and are said to be at “an advanced stage”. The FT reports that Nissan has not been involved in the talks so far. FCA, Renault and Nissan have all declined to comment. FCA and Renault already have a partnership to product commercial vehicles, and have previously held talks over sharing platforms. It is understood those talks have now moved beyond technology sharing into a wider-ranging partnership. A source told Reuters that the talks could involve a transfer of equity between FCA and Renault, saying “this isn’t just another partnership.” If the two firms did take a stake in each other, it would be similar to the agreement between Renault and Nissan that led to the creation of the Alliance between the two firms, spearheaded by Carlos Ghosn, who served as chairman of both companies. The future of the Alliance is currently the subject of talks between the two car makers following Ghosn’s arrest in Japan on financial fraud chargers. The two firms could both benefit from a tie-up. FCA is strongest in North America, through its Jeep and Ram brands, where Renault has no presence. Conversely, FCA is some way behind its rivals with plans to develop electric cars, and could benefit from Renault and Nissan’s experience in this area. FCA also includes the Fiat, Alfa Romeo and Maserati brands. FCA is understood to have also held talks with the PSA Group, which comprises Peugeot, DS, Citroen and Vauxhall/Opel, over a partnership. PSA boss Carlos Tavares is known to be keen to grow his firm with acquisitions or partnerships, and has been strongly linked to a deal with Jaguar Land Rover. FCA boss Mike Manley is also known to be keen on a partnership, telling reporters at the Geneva motor show that he was open to cooperation with other car firms, “whether it’s partnerships, joint ventures or deeper levels of equity cooperation that makes sense for us and whoever that
Origin: Renault and Fiat Chrysler reportedly in talks over tie-up
GM in talks to sell shuttered factory in Lordstown, Ohio to EV truck-maker
The Workhorse electric truck concept.Handout General Motors is negotiating the sale of its shuttered factory in Lordstown, Ohio, to a company that builds electric trucks. The company confirmed Wednesday it’s in talks with Cincinnati-based Workhorse Group to sell the huge facility, and also announced plans to invest US$700 million in three Ohio factories to create 450 additional jobs. The potential sale, first announced on Twitter by President Donald Trump, could preserve some jobs at the sprawling plant east of Cleveland. But it also dashes any hope GM would reopen the factory where until March, it had built cars for more than five decades. Workhorse Group, led by Workhorse founder Steve Burns, would acquire the facility and would hold a minority stake in a new venture, a GM statement said. But it was unclear who would own the rest. “This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorse’s role in the EV community,” said CEO Duane Hughes. The company would build a commercial electric pickup truck if it buys the facility, Burns said in the statement. Should the project go forward, initial job numbers would be in the hundreds, said Ohio Gov. Mike DeWine, moments after fielding a call from GM CEO Mary Barra. That number could rise to 3,000 over several years if Workhorse were to win a contract with the U.S. Postal Service, DeWine said. “We have people who are I would say knowledgeable about the negotiations who have told us that. That would be one of the goals of the company as they grow their business—to get a contract with the post office,” DeWine said. But news of the pending sale was greeted gloomily by workers in Lordstown who were hoping that GM would reopen the factory that stopped producing the Chevrolet Cruze compact car in March. Tim O’Hara, vice-president of the United Auto Workers union local at the plant, said workers were hoping the union could negotiate a new product for Lordstown, allowing them to stay in the area and continue careers with GM. Many will be forced to transfer in order to preserve seniority and pension eligibility, O’Hara said. “I guess that means they’re done in Lordstown,” O’Hara said of GM. “Anybody that wants to continue working for them is going to have to transfer out.” Lordstown had about 1,400 hourly workers on one shift at the time the plant stopped production. But hundreds of others had been laid off earlier as GM cut two shifts to deal with slumping demand for the Cruze. Trump happily tweeted the news about Lordstown after a conversation with Barra, calling the announcement “great news for Ohio.” Lordstown had been pulled into the 2020 presidential campaign as Trump has pressured companies to add jobs in the U.S. Ohio is key to Trump’s re-election campaign, and he has attacked GM for plans to close the plant as part of a larger restructuring effort. Workhorse CEO Hughes said Tuesday the company is making progress in the transition from development to the production. The company is on target, he said, to begin delivering its new electric vans at the end of this
Origin: GM in talks to sell shuttered factory in Lordstown, Ohio to EV truck-maker
GM talks with Amazon-backed electric truckmaker may be dead
2019 Rivian R1T Electric TruckHandout / Rivian It’s becoming clearer why electric truck-making startup Rivian may have spurned the chance to form a partnership with General Motors: The company appears to be doing just fine on its own. With a US$700 million funding round led by Amazon.com just completed, Rivian has six vehicles planned by 2025—and that’s just the models that will be sold under the Rivian brand. The startup also will be making several models for other companies, founder R.J. Scaringe said in an interview at the New York auto show. One of them is related to the Amazon deal, Scaringe said, declining to give more detail. Scaringe’s grand plan helps explain why talks that would have given GM a stake have reportedly fallen apart. With both consumers and businesses showing interest, Rivian is rebuffing a deal that may have required a level of exclusivity that would have kept it from building vehicles for others. “In general, my reason for starting Rivian was to do big things without anything preventing us from doing that,” Scaringe said, while declining to discuss talks with GM specifically. GM and Rivian came close to a deal that could have benefited both companies. GM would have been able to lend engineering and manufacturing expertise. In return, Rivian may have helped the largest U.S. automaker get an electric pickup to market quicker. With those talks in the past, Scaringe has big ambitions. He said that by 2025, Rivian’s plant – a former Mitsubishi factory in Normal, Illinois, bought for just US$13 million – will make the half-dozen different pickups and sport utility vehicles of varying sizes. None of the vehicles Rivian has in the pipeline will be a sedan, Scaringe said. All of them will be larger pickup and SUVs because those vehicles are popular and burn the most fuel. Rivian’s electric-vehicle platform, which Scaringe prefers to refer to as a “skateboard,” is a big part of his vision to deliver returns to those who’ve backed him. In addition to retailing trucks and SUVs, he’s open to selling the technology to others for a myriad of applications, such as stationary batteries. The company, headquartered in Plymouth, Michigan, is drawing significant interest from consumers. As Tesla did with the Model 3 sedan, Rivian has been taking $1,000 deposits for the R1T pickup and R1S SUV that will go on sale starting in the fall of 2020. Rivian invited all depositors to check out the company’s vehicles at an event Tuesday at Classic Car Club Manhattan. While Scaringe said he figured he would draw a limited audience from the New York Metro area, about 1,200 people showed up, with some visiting from as far away as Hawaii. Rivian has more than 1,200 pre-orders, Scaringe said, though he declined to say how many. He’s already looking for ways to expand production in Normal. A little more than half the depositors want the pickup
Origin: GM talks with Amazon-backed electric truckmaker may be dead
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