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FCA compromises with France, moving Renault merger bid forward

FRANKFURT/PARIS – Renault directors were preparing to review Fiat Chrysler's $35 billion merger offer on Tuesday, after the Italian-American carmaker resolved differences with the French government overnight, three sources said. The compromise on French government influence over a combined FCA-Renault may clear the way for Renault's board to approve a framework agreement beginning the long process of a full merger, unless new issues surface at the meeting. France, Renault's biggest shareholder with a 15% stake, had been pressing for its own guaranteed seat on the new board and an effective veto on CEO appointments. But after late-night talks with FCA Chairman John Elkann, the French government has accepted a compromise that would see it occupy one of four board seats allocated to Renault, balanced by four FCA appointees, the sources said. Renault would also cede one of its two seats on a four-member CEO nominations committee to the French state, they said. Renault, FCA and the French government all declined to comment on the discussions. The same evening that the compromise was was negotiated, activist hedge fund CIAM wrote to the board of Renault to say it "strongly opposed" a planned $35 billion merger with Fiat Chrysler. Calling the deal "opportunistic," the fund said the current deal terms strongly favored Fiat Chrysler and offered no control premium. (Reporting by Arno Schuetze and Laurence Frost; additional reporting by Giulio Piovaccari in Milan and Simon Jessop; editing by Jason Neely and Rachel Armstrong) Government/Legal Chrysler Fiat Mitsubishi Nissan Renault merger

Italian government to lean on Fiat's Marchionne to commit to country

With the recent chatter that Fiat is looking to move its global headquarters to the US following a complete merger with Chrysler, the Italian government is voicing its opinion on the matter. Facing the potential job loss from the automaker leaving the country, Italy's industry minister is meeting with Fiat CEO Sergio Marchionne in what will likely be a plea to keep the company based in Turin rather than moving to Auburn Hills, MI - if indeed it is able to acquire the additional 41.5 percent of Chrysler currently owned by the United Auto Workers.
According to Bloomberg, Fiat is Italy's biggest private employer and unemployment is already nearing a 20-year high. The non-car side of Fiat, Fiat Industrial, is already planning a move to the UK, so it goes without saying that Fiat moving would be a pretty big blow for the Italian economy. In the article, Fiat says that the headquarters issue is "not on its agenda now," but that statement is far from a denial.

The Grand Caravan, at least the name, isn't dead yet in Canada

Last week we got Stellantis. This week, we’re learning that the Grand Caravan name isnÂ’t actually dead. ItÂ’s just moved to Canada. Allow us to explain. The Dodge Grand Caravan is well and truly gone. However, FCA has decided the name is too good not to use. Therefore, FCA Canada just announced that Canadians will get the Chrysler Grand Caravan for the 2021 model year. One look at the photos will tell you most everything you need to know about the van. ItÂ’s a rebadged Chrysler Voyager, which itself is a budget Chrysler Pacifica by a different name. Basically, the U.S. gets the Voyager, and Canada gets the Grand Caravan. “WeÂ’re incredibly proud to maintain the ‘Grand CaravanÂ’ nameplate exclusively in the Canadian marketplace,” said David Buckingham, President and CEO, FCA Canada. “Particularly here in Canada, that name has become synonymous with affordable, safe and innovative family transportation that the 2021 Chrysler Grand Caravan builds upon.” Now that the Voyager and Caravan are the same again, the next logical step would be to bring back Plymouth, right? Rebadged Plymouth Hellcats wouldnÂ’t bother us. Just Â… you know, an idea. Canadian customers will have the choice of two trims for the Grand Caravan: Base and SXT. Similar to the U.S., upper trim levels of the van will be called Pacifica. The two will be sold alongside each other at Chrysler dealerships. Photos of the Pacifica with the Grand Caravan badge already have us a little weirded out, but now youÂ’ll know whatÂ’s going on during your next trip up north when you see a Chrysler Grand Caravan roll by. Related video: