An Italian newspaper claimed this weekend that the two were plotting to join forces to face down the threat of Chinese imports
https://www.carscoops.com/author/chris-chilton-cc/
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by Chris Chilton
4 hours ago
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We like to joke in the West that China is plotting to take over the world, but judging by reports in the Italian press this past weekend, Stellantis isn’t short on megalomaniacal tendencies. One newspaper claimed that the automaker giant that already consists of the old Fiat-Chrysler group, PSA and what was once GM Europe, is looking to join forces with Renault.
That resulting company would be colossal, and could lock out huge portions of the car market, the idea being that it would enable the group’s companies to drive down costs, putting them in a better position to battle the new influx of Chinese EVs starting to hit Europe’s roads. But Stellantis chairman John Elkann – grandson of legendary Fiat figurehead Gianni Agnelli – trashed the rumor, saying it was untrue.
“There is no plan under consideration regarding merger operations with other manufacturers,” Elkann said in a statement, reported by Reuters, asserting that Stellantis remained committed to its existing long-term plans.
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The latest merger rumor came from Italy’s Il Messaggero newspaper, which wrote that the French government, which is both Renault’s largest shareholder and also has fingers in the Stellantis pie, was investigating the idea of a merger between the two groups. But Stellantis CEO, Carlos Tavares, who spent decades at Renault, has also recently made generalized comments about mergers that some industry watchers have taken as hints of a coming union.
Renault has been weakened by abandoning the Russian market and scaling back its ties with Nissan, making it look like tempting prey. But analysts Reuters spoke to didn’t necessarily see sense in a Renault-Stellantis merger, explaining that it would only expand overcapacity in Europe.
Moreover, that’s only part of the problem that would face management teams involved in the merger that Stellantis swears isn’t happening. Another one is what on earth would they call the resulting behemoth?
