FCA and Renault's negotiations back on track after governmental speed bump, report says
Merging two companies with strong ties to governments in different countries isn't without its difficulties, it seems.
Fiat Chrysler's plans to merge with Renault have been rolling along nicely, with the exception of a recent speed bump involving the French government's 15% stake in the automaker.
Negotiations had been held up briefly while FCA executives worked with the French to determine the best way to proceed without worrying about a foreign government having too much influence over a combined FCA-Renault.
Automotive News reported Tuesday that a compromise had been reached between the two companies and the French government that would shuffle the number of board seats around. In this compromise, France would get one of Renault's four board seats, and FCA would retain its four independent seats.
France also expressed a desire to have veto power on any future prospective CEOs, but in this compromise, it settled for one of Renault's two seats on a four-member CEO nominations committee.
FCA representatives declined to comment on the compromise and ongoing negotiations.
Thanks to all these sweet Franco-American night moves, things appear to be cleared to move forward once more, but the road ahead doesn't seem to be totally devoid of hazards. Nissan, for example, isn't exactly thrilled with the prospect that its fellow Alliance member would merge with FCA and has been protesting.
One of the French government's stipulations for the merger moving forward is that Renault must maintain its alliance with Nissan and Mitsubishi, so while those companies don't necessarily have an official say in things, their influence will undoubtedly be felt.
Renault didn't immediately respond to Roadshow's request for comment.
