If anyone believes these two should not be wed... please speak now. Fiat Chrysler spoke. About itself. The car-glomerate left Europe's Renault on the altar, withdrawing the $40B merger offer it had announced just two weeks ago. Here's the strange family background behind the deal:
- The French government is Renault's biggest shareholder.
- Renault also has a loooong relationship with Japan's Nissan, which it owns 43% of (and Nissan incestuously owns 15% of Renault).
- Fiat Chrysler is part Italian, part American, with a dozen brands including Alfa Romeo, Jeep, and Ram.
Straight up family drama... All those underlying relationships created tension — And within just a few days, a series of events broke up the wedding while the prenup was still getting signed:
- French officials went into a "marathon board meeting" to discuss the deal Wednesday.
- Their main focus: Don't let the deal affect Renault's special relationship with Nissan.
- Then Nissan indicated it may end its relationship with Renault if the deal went through, feeling betrayed it hadn't been consulted before the deal offer became public.
- So France asked to delay the vote on the merger — That's when Fiat Chrysler withdrew its proposal.
This reflects Europe's national divides... With dozens of brands, Europe's carmakers are constantly competing with each other. Alliances or mergers could save money and boost efficiency so that everybody wins — Fiat Chrysler thought committing to Renault would be "transformational" to take on Germany's Volkswagen. But now it's back to national rivalries.