Fiat-Chrysler (FCA) has proposed a merger with French automaker Renault, which would create the world’s third largest motor vehicle OEM.
According to reports, the new business would be owned 50 percent by Renault’s shareholders and 50 percent by FCA’s. The newly created company would trail only Volkswagen and Toyota in terms of vehicle production. Its board would contain 11 members, including a representative from Nissan, who is part of an alliance with Renault. Nissan and fellow Japanese automaker Mitsubishi would remain in a partnership with the newly formed company if the proposed merger does take place.
Reports indicate the merger would be unlikely to result in any plant closures. The news comes as former Renault chairman Carlos Ghosn awaits trial in a high profile fraud case.