Canadian automobile manufacturing will be a small contributor to the reshaping of the global industry stemming from a merger proposed Monday by Fiat Chrysler with France’s Renault to create the world’s third-biggest automaker. While Fiat Chrysler says the merger with Renault would accommodate the alliance and lead to savings for them, it is unclear how the Japanese companies might react in the longer term to being tied to a much larger partner. A deal would save 5 billion euros (C$7.5 billion) for the merged companies each year by sharing research, purchasing costs and manufacturing and tooling efficiencies, Fiat Chrysler said. Overall, Fiat Chrysler is stronger in the U.S. and SUV markets, while Renault is stronger in Europe and in developing electric vehicles. “This operation will bring benefits to both countries,” Fiat Chrysler Chairman John Elkann told reporters in Italy, noting that it had been 10 years since Fiat’s takeover of bankrupt Chrysler, in exchange for small-car technology and management know-how.

Source: thestar May 27, 2019 17:26 UTC