2024-10-04 16:10:02
Rumors of a rapprochement between Renault and Stellantis are becoming more persistent, with some of them talking about a merger, others only about an industrial agreement to reduce production costs, especially in electric cars, French media write. Shares of Stellantis tumbled on the stock market, closing down -14.7%, the lowest level since October 2022, after cutting 2024 profit forecasts.
The main organizer of the merger between Stellantis (Peugeot, Citroen, Opel, Fiat) and Renault appears to be French President Emmanuel Macron, given that the French state holds a 15% stake in Renault and 6.1% in Stellantis. This political connection underlines the French government’s interest in strengthening the position of local car companies.
The eventual merger would include the 15 brands of Stellantis and the Renault brands (3 in total with Alpine), with 18 brands and factories distributed globally. Luca de Meo, Renault’s current chief executive, could head the mega group, while Carlos Tavares’ candidacy looks less likely as his contract expires in 2026 and he could be replaced at the helm of Stellantis.
The hypothesis of a merger between Renault and Stellantis was raised due to the crisis in the sector, with the need for cooperation to reduce the cost of producing electric cars and facing competition from Chinese cars. However, the merger would be unbalanced: Stellantis has a capitalization of 68 billion euros and a turnover of 190 billion, compared to Renault’s 10.5 billion and 53 billion.