Fiat Chrysler close to merging with Renault.

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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.
 
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.
 
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.
 
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.
 
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.
 
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.
 
Remember my Encore, Fuego and Alliance pretty well.

[Linked Image]


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



Well, one could argue that the Fiat Chrysler combo at least brought some complementary skill sets, since Fiat brought small car and small diesel expertise to the marriage while Chrysler had and has some very good large RWD platforms as well as good and even iconic SUVs.
It also appeared that Fiat would bring competent management, although that was never really apparent in practice.
Smashing this combine into Renault doesn't appear to bring any benefit, especially since the last competent senior manager of Renault is sitting in a cell in Japan.
 
Originally Posted by fdcg27
Originally Posted by Garak
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.gif



Well, one could argue that the Fiat Chrysler combo at least brought some complementary skill sets, since Fiat brought small car and small diesel expertise to the marriage while Chrysler had and has some very good large RWD platforms as well as good and even iconic SUVs.
It also appeared that Fiat would bring competent management, although that was never really apparent in practice.
Smashing this combine into Renault doesn't appear to bring any benefit, especially since the last competent senior manager of Renault is sitting in a cell in Japan.




It probably looked good in theory but the actual product hasn't benefited at all. The fact that Fiat Chrysler is at or near the bottom of the quality rankings for a number of years tells the story.
 
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.


They want to retain capacity in Europe especially rather than reduce it. Unfortunately this industry, being highly regulated, has a political component to every major decision like this.
 
Originally Posted by FordCapriDriver
The quality of some of the new Renaults is shocking ( -ly bad )


What model?
 
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