Renault

Ticker RNO

Today's data summary

Market closed
% change
-1.53%
Price Euros
51.38
Change
-0.80
As of 05:22 19 Jul 2019
Market cap. Euros
13,928.09 million
As of 05:22 19 Jul 2019

Latest updates

France happy to look at new Renualt offer

car
Reuters

French finance minister Gerald Darmanin says the French government would be happy to look at any new proposal if Fiat Chysler were return with an offer

That follows the news that the Italian car maker has withdrawn its merger proposal with its French rival just a week after making it.

"Talks could resume at some time in the future," Mr Darmanin told FranceInfo radio.

Italy government backs Fiat Chrysler-Renault merger

A Fiat car
Getty Images

Italys Deputy Prime Minister Matteo Salvini aid the country would support the merger of Fiat Chrysler and Renault as long as there is an advantage for Italy.

Fiat Chrisyler is in talks over the payment of a special dividend to Renault shareholders and stronger job guarantees in a bid to persuade the French government to back the proposed merger, according to Reuters.

The improved offer would also see the combined company's operations headquartered in France and the French state granted a seat on its board, the report says.

"Clearly, we support it if it is favourable for Italian industry and workers regardless of headquarters' location," Salvini told Reuters. Otherwise, he added, he would "give a call" to FCA's controlling shareholders, the Elkann family.

French jobs to be protected in car deal

renault logo
Getty Images

French Finance Minister Bruno Le Maire has been speaking to RTL radio about the possible deal between Renault and Fiat.

He said, according to Reuters, that the French government would seek "four guarantees" including the protection of French jobs, ensuring France was well-represented on the board of the new entity, and ensuring Renault/Fiat was a leader in the development of electric batteries.

"The first: industrial jobs and industrial sites. I told the Renault chairman very clearly that it was the first of the guarantees I wanted from him in the opening of these negotiations. A guarantee on the preservation of industrial jobs and sites in France," said Mr Le Maire.

France owns 15% of Renault although this will fall to 7.5% if the deal goes ahead.

Car merger: Not such a good fit

Today Programme

BBC Radio 4

car
Reuters

Back to that "transformative" merger proposal by Fiat Chrysler for French carmaker Renault.

Nick Oliver, professor of management at Edinburgh University, told BBC Radio 4's Today programme that he was more sceptical about the "fit" between the two carmakers than the market, where their share prices had jumped yesterday.

"If you look at Renault and Fiat you've got two European brands that are not particularly strong - that's putting it mildly in Fiat's case. In the case Chrysler, they've got a strong presence in north America but they are by far the weakest... and they are terribly exposed to the SUV pick-up market in North America which is profitable in the good times but tend to tank in the bad times," he said.

And what about Renault's possible tie-up with Nissan? "I'm not sure I would describe Nissan and Renault's first love.. All the signs are that Nissan is treating this really cautiously and it's going to be hugely difficult to get Nissan to join the deal".

"Integrating car companies is really difficult," he said. Two weaker companies put together does not make them a stronger one.

Car competition is changing and will lead to more mega-mergers

BBC Radio 5 Live

Wake Up To Money

Fiat
Getty Images

The proposed Fiat Chrysler-Renault merger has set Dieter Becker, global head of automotive at KPMG, pondering the future of competition.

"The definition of competition has changed," he told Wake Up To Money, predicting that the competition of the future for the car industry will come from the technology and software companies.

"It's just the beginning of a bigger wave that will come for many companies when they realise that the real competition is not within the industry, the real competition is in the wider ecosystem," he said.

Senard replaces Ghosn

Jean-Dominique Senard
AFP

Renault chairman Jean-Dominique Senard has replaced Carlos Ghosn on the board of Nissan.

Renault owns 43% of the Japanese car maker.

Mr Senard, introduced to shareholders at this morning's extraordinary meeting, promised to do his best to keep the company's performance on track.

"I will dedicate my energy to enhance the future of Nissan," said Mr Senard.