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In a merger which would create one of the largest car companies in the world, FCA made an offer to Groupe Renault to combine. One of the primary reasons is to cut costs.

Key parts of the deal:

 Combined business to be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders – balanced governance structure and majority of Board of Directors being independent

 Combination would create the 3rd largest global OEM with 8.7m vehicle sales and a strong market presence in key regions and vehicle segments

 Broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream

 Combined company would be a world leader in the rapidly changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving  No plant closures as a result of the combination

 In excess of €5 billion estimated annual run rate synergies incremental to existing Renault-Nissan-Mitsubishi Alliance (Alliance) synergies

 Strong combined balance sheet allowing for flexible capital allocation and robust dividend policy

Significant benefits to the other Alliance partners including ~€1 billion of additional estimated run rate synergies