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Fiat Chrysler close to merging with Renault. #5116636 05/26/19 07:12 PM
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PimTac Offline OP
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https://www.cnbc.com/2019/05/26/fia...anced-talks-to-merge-the-automakers.html



Renault wants to grow. Nissan-Mitsubishi doesn’t want a merger so Renault looks to Fiat Chrysler who have been desperate for someone to buy in.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116653 05/26/19 07:35 PM
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fdcg27 Offline
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So merge one failing automaker with another?
Sounds like a plan!
The failure of the merged entity will help to reduce the chronic overcapacity that has plagued the industry through all of its history.
The industry as a whole has never had much pricing power as a consequence of over-capacity, which is the reason that the sticker price of any vehicle is more of a LOL number than the start of any serious negotiation for any halfway savvy buyer.
This is why new cars can be bought so cheaply with cheap or free financing or giveaway lease deals as a part of the package.
Gotta try to move the excess quantities of iron since markets must clear.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116667 05/26/19 07:46 PM
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atikovi Offline
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Renault was part of Chrysler back when they sold the AMC Alliance and Eagle Medallion. Car manufacturers buy, sell, merge and dissolve companies as often at banks do.

Re: Fiat Chrysler close to merging with Renault. [Re: atikovi] #5116670 05/26/19 07:48 PM
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PimTac Offline OP
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Originally Posted by atikovi
Renault was part of Chrysler back when they sold the AMC Alliance and Eagle Medallion. Car manufacturers buy, sell, merge and dissolve companies as often at banks do.



Yep I remember.


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Re: Fiat Chrysler close to merging with Renault. [Re: fdcg27] #5116671 05/26/19 07:50 PM
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PimTac Offline OP
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Originally Posted by fdcg27
So merge one failing automaker with another?
Sounds like a plan!
The failure of the merged entity will help to reduce the chronic overcapacity that has plagued the industry through all of its history.
The industry as a whole has never had much pricing power as a consequence of over-capacity, which is the reason that the sticker price of any vehicle is more of a LOL number than the start of any serious negotiation for any halfway savvy buyer.
This is why new cars can be bought so cheaply with cheap or free financing or giveaway lease deals as a part of the package.
Gotta try to move the excess quantities of iron since markets must clear.





Good comment. I don’t understand the reason for the merger of these two. Fiat has been looking for a long time but their price and demands were too high. The China automakers turned them down. Nissan-Mitsubishi is doing the same.

Size is not a measure of strength in this fast changing economy.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116687 05/26/19 08:03 PM
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fdcg27 Offline
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Originally Posted by PimTac
Originally Posted by atikovi
Renault was part of Chrysler back when they sold the AMC Alliance and Eagle Medallion. Car manufacturers buy, sell, merge and dissolve companies as often at banks do.



Yep I remember.


You both have a somewhat hazy memory of what actually happened.
Renault teamed up with AMC which didn't turn out so well.
Chrysler then bought AMC from Renault to gain access to the Jeep brand.
This proved wise, since FCA as it is now would already be dead were it not for Jeep.
Chrysler was contractually obligated to continue the manufacture of certain Renault designs, hence the short-lived Eagle brand.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116692 05/26/19 08:09 PM
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tiger862 Offline
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It is so FCA can get into electric car business as well as autonomous vehicles.

https://group.renault.com/en/innovation-2/autonomous-vehicle/


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Re: Fiat Chrysler close to merging with Renault. [Re: tiger862] #5116699 05/26/19 08:12 PM
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OVERKILL Offline
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Originally Posted by tiger862
It is so FCA can get into electric car business as well as autonomous vehicles.

https://group.renault.com/en/innovation-2/autonomous-vehicle/


That would make sense. They've got basically nothing in that department right now and buying credits from Tesla doesn't seem like a winning long-term strategy.


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Re: Fiat Chrysler close to merging with Renault. [Re: OVERKILL] #5116705 05/26/19 08:19 PM
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PimTac Offline OP
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Originally Posted by OVERKILL
Originally Posted by tiger862
It is so FCA can get into electric car business as well as autonomous vehicles.

https://group.renault.com/en/innovation-2/autonomous-vehicle/


That would make sense. They've got basically nothing in that department right now and buying credits from Tesla doesn't seem like a winning long-term strategy.




That was their big reason for a NM merger but NM wants to be on their own. The alliance is okay but beyond that is negatory. Nissan is really doing big research into the electric/autonomous vehicle segment.


My memory of AMC is admittedly not that good. They were a hot potato back when the industry was going through the Malaise.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116730 05/26/19 08:42 PM
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atikovi Offline
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Remember my Encore, Fuego and Alliance pretty well.

[Linked Image]

[Linked Image]

[Linked Image]

Found them quite pleasant and fun to drive. I'd say if it brings some new Renaults over here go for it.

Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116738 05/26/19 08:47 PM
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Some of those Renaults are really sharp cars. I really like the Talisman.


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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116752 05/26/19 08:55 PM
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Originally Posted by PimTac
https://www.cnbc.com/2019/05/26/fia...anced-talks-to-merge-the-automakers.html



Renault wants to grow. Nissan-Mitsubishi doesn’t want a merger so Renault looks to Fiat Chrysler who have been desperate for someone to buy in.


Sounds like another recipe for failure

Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116763 05/26/19 09:07 PM
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The best Nissans of the past 10-15 years were the ones built in Japan as far away from Renault and their parts as possible, do with that what you will.

Re: Fiat Chrysler close to merging with Renault. [Re: fdcg27] #5116797 05/26/19 09:30 PM
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Garak Offline
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Originally Posted by fdcg27
So merge one failing automaker with another?
Sounds like a plan!

Isn't that what Fiat-Chrysler such a result in the first place? wink


Plain, simple Garak.

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Re: Fiat Chrysler close to merging with Renault. [Re: PimTac] #5116818 05/26/19 09:54 PM
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Call me back when I can finally live the dream and get a Citroen in the US.


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