The proposed merger between Fiat-Chrysler (FCA) and Renault has failed for now, with two major hurdles standing in the way of a resurrection.
According to reports, FCA officials are concerned about the political climate in France, where Renault is based. FCA would want the French government to relinquish its stake in Renault before it resumed talks. France currently holds a 15 percent stake in the automaker. FCA officials said the new company would be committed to keeping jobs and facilities in France if the merger were successful.
For Renault, support from its alliance partner Nissan would be necessary before re-engaging in merger discussions. According to reports, board members from the Japanese automaker abstained from an informal vote on the proposal.