Renault Plans June 4 Decision on FCA Merger Talks

Renault SA says its board will decide on June 4 whether to open merger talks with Fiat Chrysler Automobiles NV, Reuters reports.

France, which owns 15% of Renault, favors the $35 billion proposal, as long as the union benefits the company, adds jobs in the country and is a positive influence on Renault’s 20-year-old alliance with Nissan Motor Co.

FCA, which proposed the merger on Monday, claims the result would save the two carmakers €5 billion. The company points to the ability to eliminate duplicated costs and investments on product and technology development.

Reuters notes that some former Renault executives have voiced skepticism about the size of the deal and its estimated savings. Regardless, French Finance Minister Bruno Le Maire says FCA’s overture represents a “real opportunity” for Renault.