The great consolidation continues.

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gooki

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Fiat Chrysler to propose merger with Renault

https://asia.nikkei.com/Business/Companies/Exclusive-Fiat-Chrysler-to-propose-merger-with-Renault

FCA's earnings depend mostly on its sales in North America. A merger with Renault, which obtains most of its earnings from the European market, would supplement each other's weaknesses. A merger also would benefit both carmakers in terms of production and investment in new areas such as artificial intelligence and electric vehicles.

The development of connected, autonomous, shared and electric cars, which are considered keys to the industry's future, is extremely capital intensive. Automakers are pairing up with more businesses to eliminate overlapping investments.
 
And the proposal is now offical.

PARIS/TOKYO -- Fiat Chrysler Automobiles, an Italian-American multinational carmaker, said Monday that it has proposed combining its operations with those of French automaker Renault, a move that would underscore the industry's rapid evolution in recent years.

FCA said the combined business would be 50% owned by FCA shareholders and 50% by those of Renault, and create synergies worth more than 5 billion euros ($5.6 billion) a year. It proposes a board initially made up of 11 members, with four members each for both FCA and Renault, and one from Renault alliance partner Nissan Motor.

"The proposed combination would create a global automaker, pre-eminent in terms of revenue, volumes, profitability and technology," FCA said in a news release. "The combined business would sell approximately 8.7 million vehicles annually ... and would have a broader and more balanced global presence than either company on a stand-alone basis," the statement said.
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https://asia.nikkei.com/Business/Business-deals/FCA-formally-proposes-merger-with-Renault
 
Yes there is likely to be consolidation among the older manufacturers. Some of this will compensated by some new entrants (Tesla is new, and we have companies like Dyson and Rivian who may come in) and by Chinese Manufacturers who may want to go global. In today's trade climate, Chinese exports of cars may look a little far fetched, but within a few years, Chinese names will become more common place across the globe. .
 
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