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| Fiat Chrysler proposes merger with Renault | Fiat Chrysler proposes merger with Renault |
| (32 minutes later) | |
| Fiat Chrysler has made a "transformative" merger proposal for French carmaker Renault, the Italian firm said on Monday. | Fiat Chrysler has made a "transformative" merger proposal for French carmaker Renault, the Italian firm said on Monday. |
| The combined business would be 50% owned by Fiat shareholders and 50% by Renault stockholders. | The combined business would be 50% owned by Fiat shareholders and 50% by Renault stockholders. |
| The carmaker said the merger would create a global automotive leader, with 8.7 million vehicle sales. | |
| Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles. | Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles. |
| In a statement, Fiat said the planned merger would create a "world leader in the rapidly changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving". | In a statement, Fiat said the planned merger would create a "world leader in the rapidly changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving". |
| No plant closures would be caused as a result of the tie-up, the carmaker said. | No plant closures would be caused as a result of the tie-up, the carmaker said. |
| New competitors | |
| Fiat said that if the firms' 2018 financial results were totted up, the combined company's annual revenues would be nearly €170bn (£149.6bn; $190.5bn), with operating profit of more than €10bn and net profit of more than €8bn. | Fiat said that if the firms' 2018 financial results were totted up, the combined company's annual revenues would be nearly €170bn (£149.6bn; $190.5bn), with operating profit of more than €10bn and net profit of more than €8bn. |
| Industry shifts toward electric models, along with stricter emissions standards and the development of new technologies for autonomous vehicles, have put increasing pressure on carmakers to consolidate. | Industry shifts toward electric models, along with stricter emissions standards and the development of new technologies for autonomous vehicles, have put increasing pressure on carmakers to consolidate. |
| Renault already has an alliance with Japan's Nissan, in which research costs and parts are shared. The companies own shares in each other, too. Renault owns 43.4% of Nissan's shares and Nissan owns 15% of Renault. | |
| The former chief executive of both Nissan and Renault, Carlos Ghosn, is awaiting trial following his fourth arrest amid allegations of financial misconduct. | |
| The allegations have put a strain on the 20-year-old alliance, which also includes Japan's Mitsubishi Motors. | |
| New entrants in the motoring sector such as Tesla, as well as cash-rich companies developing driverless technology such as Amazon and Google-owned Waymo, are putting pressure on older and often heavily indebted carmakers to keep up. |