Renault: FCA Merger “Off the Table”

Renault Chairman Jean-Dominique Senard reiterates that the French carmaker is no longer interested in pursuing a $35 billion merger with Fiat Chrysler Automobiles NV.

Senard told a government hearing yesterday that “this matter is behind us today.” CEO Thierry Bollore said the same thing in September. Both men emphasize that Renault’s top priority is to stabilize and continue to grow its 20-year-old alliance with Nissan Motor Co.

Still, Senard says the European auto industry needs further consolidation to brace for rising competition from China. He adds that he would welcome a return to the FCA merger in the future, if the deal could be built on conditions acceptable to all.

FCA’s overture to merge, which was presented in June, was withdrawn a week later when the Renault board could not decide quickly enough whether to discuss the $35 billion deal in depth.

FCA blamed the collapse in part on interference from France, which owns 15% of Renault. But Nissan, grappling with the arrest last November of Chairman Carlos Ghosn on charges of financial wrongdoing, also was wary that an FCA-Renault merger might further dilute its position in its own relations with Renault.