Fiat Chrysler Automobiles wants to tie the knot with Renault in a marriage that it hopes will provide a solid foundation for the technological challenges facing carmakers.
The FCA proposal follows talks between the two companies to identify products and locations where they could collaborate, particularly as they develop and commercialise new technologies.
The two companies would become equal partners if the proposal is accepted.
Underlining the need for the merger and other mergers in the automotive industry are the huge challenges posed by the rapidly changing areas of connectivity, electrification and autonomous driving.
FCA says the combined business would sell around 8.7 million vehicles annually and would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles.
It would also have a broader and more balanced global presence than either company in isolation.
While the proposal focuses on a combination of FCA and Groupe Renault, FCA says it looks forward, as part of a combined enterprise with Groupe Renault – to working with Groupe Renault’s Alliance partner companies on ways to create additional value for all Alliance members.
By other partners it means of course Nissan and Mitsubishi which are already part of an alliance with Renault.
The FCA and Groupe Renault combination together with its Nissan and Mitsubishi partners would be the largest global OEM alliance, selling more than 15 million vehicles annually.
“This proposal offers the opportunity to create the #3 global automotive company in the world with broad, complementary and strong brand and geographic presence and important strengths in transforming technologies,” FCA says.