Why Would the Renault-Nissan-Mitsubishi Alliance Merge with FCA?


The Renault-Nissan-Mitsubishi Alliance has been pretty busy lately, and here we thought they were taking a back seat for a while. No, the alliance is actually alive and well, still making smart investments, teaming up with other companies, and their latest offer is one that no one really saw coming but also secretly hoping for. Like that ship in a favorite TV series that seems uncanny and out of left-field, but totally actually works. Fiat Chrysler Automobiles (FCA) and Renault is that ship. Recently, a proposal from FCA to merge with Renault was discussed behind closed doors, but so far, nothing is set in stone.

Why wouldn’t Fiat Chrysler Automobiles want to work together with Renault? Well first off, with Renault technically calling the shots of the Renault-Nissan-Mitsubishi Alliance, if Renault were to merge with FCA, then they would be bringing Nissan and Mitsubishi Motors with them. That would, effectively, turn the merger into the world’s third-largest automaker and automotive group. What a milestone.

The Renault-Nissan-Mitsubishi Alliance has also been very busy making investments with similar interests to FCA. PowerShare is the latest in a long line of investments, an EV charging platform startup based in China that provides an online platform for EV drivers looking to recharge. Earlier in 2019, Alliance Ventures invested in Tekion, a US company focused on bringing digital experiences to automotive retail via a cloud-based platform. Throughout 2019, the Renault-Nissan-Mitsubishi Alliance made six other key investments via Alliance Ventures, a $1 billion funding campaign aimed at supporting open innovation, start-ups, and entrepreneurs in technology with a focus on autonomous systems, electric vehicles (EVs), connectivity, and artificial intelligence.

See where this is going? In July 2018, FCA revealed their plans to go electric and future lineups that would consist of plug-in hybrid and electric vehicles. In September 2018, FCA also invested $30 million into their Chelsea Proving Grounds testing facility to turn it into a testing site for future self-driving vehicles that will eventually make their way to public retail. In April 2019, FCA teamed up with Tesla, a major competitor, to meet strict emission regulations set by the European Union. Although the FCA has plans to go electric, they’re still lacking with the Chrysler Pacifica Hybrid pulling most of the weight. They needed to team up with Tesla to bring their CO2 average down, and that led to speculation about who FCA would team up with in the future.

Speculation led to the fact, and on May 27, 2019, company board behind Renault met behind closed doors at their headquarters in Boulogne-Billancourt outside Paris to discuss a proposal received from FCA to merge the two. Nothing is certain, but there’s already talk of how the merger will affect the automakers involved. Nissan and Mitsubishi Motors are already sharing technology from the successful Nissan Leaf and Mitsubishi Outlander PHEV. Think of what could happen if Chrysler gets in on that with the Pacifica Hybrid. What would happen if a Jeep® or even a Dodge vehicle borrowed a few notes?

There’s just so much that could happen. Everyone will be keeping their ears to the ground for this one. Follow along with us on Miami Lakes Mitsubishi social media to find out what happens next.

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