Stellantis Denies Rumored Merger with Renault

Reports in the Italian press over the weekend suggested that Stellantis, the automotive giant formed by the merger of Fiat-Chrysler, PSA, and GM Europe, was considering joining forces with Renault. The proposed merger aimed to create a massive company that could dominate significant portions of the car market and compete against the growing presence of Chinese EVs in Europe. However, Stellantis Chairman John Elkann dismissed the rumors, stating that there were no plans for merger operations with other manufacturers.

Stellantis Chairman Denies Merger Rumors

In response to the speculation, Elkann issued a statement reported by Reuters, asserting Stellantis’ commitment to its existing long-term plans and refuting any discussions of a merger with Renault. While the rumors originated from Italy’s Il Messaggero newspaper, which suggested that the French government, a major shareholder in both Renault and Stellantis, was exploring the idea of a merger, Stellantis CEO Carlos Tavares, who has a history with Renault, has made ambiguous comments about potential mergers in recent times.

Analyzing the Potential Merger

Industry analysts interviewed by Reuters expressed skepticism about the feasibility of a Renault-Stellantis merger. They argued that such a union would only exacerbate overcapacity issues in the European car market. Additionally, Renault’s recent struggles, including its withdrawal from the Russian market and reduced ties with Nissan, have made it appear vulnerable. However, the analysts cautioned against the merger, citing concerns about expanding overcapacity and the lack of a clear name for the combined entity.