MILAN/PARIS (Reuters) - Fiat Chrysler and Renault are set to confirm talks on a potential tie-up on Monday, with the board of the French carmaker called to an early morning meeting to discuss the situation.
It comes after news broke over the weekend that two of the world’s leading car companies are in talks on a comprehensive global partnership that could address some of the main weaknesses of both.
Pressure for consolidation among carmakers has grown with the challenges posed by electrification, tightening emissions regulations and expensive new technologies being developed for connected and autonomous vehicles.
Earlier this year FCA Chairman John Elkann - a member of Italy’s Agnelli dynasty that controls the company - stressed the family’s commitment to the automotive industry. But he also added that they were prepared to take “bold and creative decisions” to help build a solid and attractive future for the company.
A source said an announcement from Italo-American FCA could provide some concrete although initial details but added the situation was still “fluid”.
A separate source with direct knowledge of the situation confirmed that the Renault board will meet on Monday morning at 0800 local time (0600 GMT) to discuss the issue.
The meeting was first reported by French newspaper Le Figaro.
REGIONAL RATIONALE
FCA has a highly profitable North American RAM trucks business and Jeep brand but has been losing money in Europe, where it may also struggle to keep pace with looming carbon dioxide emissions curbs.
Renault, by contrast, is an electric-car pioneer with relatively fuel-efficient engine technologies and a strong presence in
