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Renault delays decision on merger with Fiat Chrysler

PARIS — Renault has delayed a decision on whether to merge with Fiat Chrysler Automobiles, a deal that could reshape the global auto industry as carmakers race to make electric and autonomous vehicles for the masses. The deal still looks likely, but faced new criticism Tuesday from Renault's leading union and questions from its Japanese alliance partner Nissan. The French government is also putting conditions on the deal, including job guarantees and an operational headquarters based in France. The French carmaker's board will meet again at the end of the day Wednesday to "continue to study with interest" last week's merger proposal from FCA, Renault said in a statement. A Renault board meeting Tuesday to study the deal was inconclusive. The company didn't explain why, but a French government official said board members don't want to rush into a deal and are seeking agreement on all parts of the potential merger. The official, who spoke on condition of anonymity in line with government policy, told The Associated Press the conditions outlined by France's finance minister still "need to be met." France and Italy are both painting themselves as winners in the deal, which could save both companies 5 billion euros ($5.6 billion) a year. But workers worry a merger could lead to job losses, and analysts warn it could bog down in the challenges of managing such a hulking company across multiple countries. And a possible loser is Japan's Nissan, whose once-mighty alliance with Renault and Mitsubishi is on the rocks since star CEO Carlos Ghosn's arrest in November. Nissan CEO Hiroto Saikawa cast doubt Tuesday on whether his company will be involved in a Renault-Fiat Chrysler merger — and suggested adding Fiat Chrysler to the looser Renault-Nissan-Mitsubishi alliance instead. Saikawa said in a statement that the Renault-Fiat Chrysler deal would "significantly alter" the structure of Nissan's longtime partnership with Renault, and Nissan would analyze its contractual relationships to protect the company's interests. If Renault's board says "yes" to Fiat Chrysler, that would open the way for a non-binding memorandum of understanding to start exclusive merger negotiations. The ensuing process — including consultations with unions, the French government, antitrust authorities and other regulators — would take about a year. A merger would create the world's third-biggest automaker, worth almost $40 billion and producing some 8.7 million vehicles a year.

Fiat Chrysler seeks $6.8 billion state-backed loan in Italy

MILAN — Italian Prime Minister Giuseppe Conte said on Saturday that Fiat Chrysler was entitled to apply for Italy's state-backed loans because the automaker employs thousands of people in the country, even though its legal base is located abroad. The Italian-American group confirmed on Saturday its Italian unit was working with Rome to obtain state guarantees on a 6.3-billion-euro ($6.8 billion) loan facility designed to help Italy's automotive industry, comprised of approximately 10,000 small and medium-size businesses. The coronavirus outbreak, which has hit Italy especially hard, slammed the brakes on demand for new vehicles and forced automakers to halt most production, burning cash. Fiat Chrysler Automobiles said in a statement that talks were ongoing with lender Intesa Sanpaolo for a three-year credit facility exclusively dedicated to the group's activities in Italy. Asked whether FCA, which has its legal headquarters in the Netherlands, could get a loan guaranteed by the Italian government, Conte said the group qualified. "We're not talking about the parent company, we're talking about the group's companies in Italy, which employ thousands of people," the prime minister said. FCA runs several plants and research and development centers in Italy, directly employing around 55,000 people. In addition, over 200,000 people work in Italy's 5,500 parts suppliers and 120,000 people in car dealers and service companies, with the automotive industry accounting for 6.2% of Italy's domestic product, FCA said. News that FCA was asking the Italian government for liquidity support had raised criticism. The ruling party PD's deputy president, Andrea Orlando, earlier on Saturday said on Twitter that if a company asked the Italian government for sizable financing, it had to bring back its legal base to Italy. The scheme is part of emergency measures the Italian government is making available to the country's businesses. It offers more than 400 billion euros' worth of liquidity and bank loans to companies hit by the pandemic. FCA said the state-backed credit facility it is seeking will have "the sole purpose of providing operational support for payments to Italian suppliers to support their liquidity and, at the same, supporting the restart of production and investment at Italian plants." The group has gradually restarted operations in Italy since the end of April. Related Video: Earnings/Financials Government/Legal Chrysler Fiat coronavirus

New Fiat 500e is coming to America, including fashion-forward one-offs

LOS ANGELES — It seems that Fiat took our advice and will bring the electric Fiat 500 to America. It will also adopt the 500e moniker like its predecessor, which happened to be only for the U.S. market. Unfortunately, we're going to be waiting a little bit for the American 500e. Fiat announced it won't be on sale until early 2024, with a full reveal of the American version coming at next year's L.A. Auto Show. While we have certainly seen a possible niche in the market for the chic hatch, we do worry a little bit about whether that will still be there in another year and some change. Fiat 500e Giorgio Armani View 4 Photos As for a quick recap of why we think the 500e has a shot in the U.S., well, it offers pretty solid value. In Europe, it's priced below both the Mini Cooper S E and the short-range Nissan Leaf. Simultaneously, it offers more range than either of those cars with an estimated 199 miles on a charge. That likely would go down in U.S. testing, but should still top the Leaf's 150-mile estimate even on the EPA test cycle. Assuming pricing still undercuts those two cars and range doesn't change significantly, it would be a great entry-level EV with oodles of style. Plus, Fiat has a single model on sale right now (the 500X), and dealers are likely begging for more options to offer. Fiat 500e Kartell View 4 Photos Speaking of style, Fiat brought a trio of custom models designed by fashion brands Giorgio Armani, Kartell and Bvlgari. They aren't new, having been shown in years past, but they're still very sharp. The Giorgio Armani has laser-etched paintwork to simulate fabric weaves, the Kartell has cool, futuristic plastic panels, and the Bvlgari has a custom 500-badge brooch in the steering wheel, which is both stylish, but also probably dangerous. Fiat 500e Bvlgari View 4 Photos We're also hoping that with a launch date in 2024, the electric 500 Abarth that will be revealed soon will also be imported. We would also love to see the convertible version that underpins the Armani car make the trip to our shores, too. We're sure to get more information in the future. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.