The proposed mega-merger of Renault S.A. and Fiat Chrysler Automobiles N.V. unveiled this week signals a new urgency behind the biggest transformation in 125 years of automaking. And to be sure, a merger of Renault and Fiat Chrysler would create the world’s third-largest automaker, eclipsing General Motors Co. in size. Fiat Chrysler “has limited in-house know-how and has invested less than peers” in the advanced technologies, David Lesne, auto analyst at UBS, said in a research note last week. Which is why Fiat Chrysler has less need of Renault’s European market stronghold, which overlaps with Fiat Chrsyler’s, than of Renault’s lead over Fiat Chrysler in EV and self-driving technologies. A combined Renault and Fiat Chrysler would also benefit from larger combined revenues and an estimated $7.6 billion in cost savings that could be committed to R&D and new-product development.

Source: thestar May 31, 2019 14:48 UTC