Fiat Chrysler pulls pin on Renault merger proposal, cites "political conditions"
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After what looked like a healthy build-up, Fiat Chrysler Automobiles has withdrawn its offer to merge with Renault.
The decision comes after several days of discussions between FCA, Renault, and the French government around the terms of the 50/50 merger — which would have brought together FCA's Fiat, Jeep, Chrysler, Ram, and Alfa Romeo with Renault, Nissan, Lada, and Dacia.
In a press release published late yesterday, FCA said that "the political conditions in France do not currently exist for such a combination to proceed successfully."
“The Board of Fiat Chrysler Automobiles N.V, meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault.
"FCA will continue to deliver on its commitments through the implementation of its independent strategy."
However, a report from the Wall Street Journal says that there are other reasons afoot, too. The publication's unnamed sources have said that Nissan refused to support, underlined by two of the brand's representatives offered abstentions (declining to vote) while voting on said merger.
Nissan's rumoured role in the faltering merger links back to suspected concerns that the Japanese manufacturer is considering backing out of its partnership with Renault. The brand has, of course, faced other challenges this year too regarding embattled former CEO Carlos Ghosn.