Is the Daimler – Renault Nissan partnership a possible target for alliance hungry FCA? image

Fiat Chrysler Automobiles chief executive officer Sergio Marchionne might one day grow tired of waiting patiently for General Motors to come to the negotiations table and look for a merger elsewhere.

Marchionne has been very adamant and outspoken about the need for the automotive industry to further consolidate – much like it happens with their supplier sector – in a bid to build economies of scale and also in the process secure a faster turnaround for FCA, the third largest US automaker and the seventh biggest in the world. And the CEO has been very focused on securing a partnership with its larger US peer, General Motors – even as the latter has been very plain in refusing their offers. But during a media stint that was called to showcase the results of the six-year partnership between Daimler AG and the Renault Nissan alliance, their respective CEOs – Dieter Zetsche and Carlos Ghosn both claimed an open mind if FCA would seek to enter their successful business venture. “Any single opportunity we have in front of us…we will entertain,” commented Ghosn. “You have to weigh the benefits you might obtain against the additional complexities. There’s some breaking point,” added more cautiously Zetsche.

There’s one major argument against FCA teaming up with Daimler and Renault Nissan and it’s coming from the German side – Daimler and the former Chrysler Group LLC were involved not long ago in a failed “marriage”. But there are also advantages – a very small experiment between three vastly different automakers evolved in a very successful and broad partnership. The latest example: the breaking ground ceremony in Aguas Calientes, Mexico for a factory that will manufacture luxury cars for Infiniti and Mercedes.


  • Kevin

    Nissan makes great cars, but is reeling in the truck market, so this would help Nissan in the US market. Chrysler has no luxury vehicles that’ll compete with Mercedes, but Smart and Fiat are direct competitors and both are doing poorly. I think the results of this would only be seen in the US / Canadian market, since Chrysler doesn’t exist anywhere else in significant numbers. I’ve been wondering for months and months why Nissan wasn’t being asked about a possible merger with Chrysler b/c it seems pretty logical.

  • Arthur Dunning III

    I wouldn’t be averse to this partnership … provided we are assured that there is no repeat of the “merger of equals” fiasco from before.