Sergio Marchionne

Fiat proposes merger with Renault in latest auto industry jolt

Fiat proposes merger with Renault in latest auto industry jolt

Fiat Chrysler Automobiles is proposing a merger with French automaker Renault that would create the world’s third-biggest carmaker as manufacturers scramble for scale to tackle an expensive shift to electrification and autonomous driving.

The transaction would be structured as a 50-50 ownership through a Dutch holding company, the Italian American automaker said Monday. Renault’s board later said it would study what it called a “friendly” proposal, which would give its shareholders, including the French government, an implied premium of about 10%.

Together, Fiat and Renault made about 8.7 million cars last year, which would vault the pair past South Korea’s Hyundai Motor Group...

79°