As Fiat, Peugeot head for merger, a look at tie-ups and break-ups in auto world

The merger between the French and the Italian carmaker is one of the big ticket tie-ups in the last two decadesHere is a look at other such mergers and divorces in the world of automobile
By : AFP
| Updated on: 18 Dec 2019, 10:28 AM
FILE PHOTO: Logos of Peugeot and Fiat
FILE PHOTO: Logos of Peugeot and Fiat
FILE PHOTO: Logos of Peugeot and Fiat
FILE PHOTO: Logos of Peugeot and Fiat

Before the proposed mega-merger of French carmaker PSA with US-Italian auto giant Fiat Chrysler, the car sector has seen a number of other major auto tie-ups -- or attempted deals -- over the past two decades.

The supervisory board of PSA on Tuesday approved the deal with Fiat Chrysler, a source close to their talks said. It would create the world's fourth-largest car manufacturer.

Fiat, Renault tie-up aborted

Similar Cars

Find More Cars
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price
Nissan Magnite (HT Auto photo)
Nissan Magnite
18.75 kmpl | 999 cc | Manual | Petrol | 5 Person | FWD | 71 bhp | 96 Nm | 205 mm | 939 kg | 336 litres | 5 Gears | 1.0L B4D | No | 40 litres | Hrs | 750 Km | | No | Front & Rear | seconds | Kmph | 18 kmpl
₹4.99 - 10.05 Lakhs**Ex-showroom price
Renault Triber (HT Auto photo)
Renault Triber
999 cc | Petrol | Manual | 19 kmpl
₹5.12 - 7.98 Lakhs**Ex-showroom price
Renault Kiger (HT Auto photo)
Renault Kiger
999 cc | Petrol | Manual
₹5.45 - 10.09 Lakhs**Ex-showroom price
Citroen C3 (HT Auto photo)
UPCOMING
Citroen C3
1198 cc | Petrol | Manual
₹5.5 Lakhs *Expected Price
Volkswagen Polo (HT Auto photo)
Volkswagen Polo
999 cc | Petrol | Manual | 17.74 kmpl
₹5.83 - 10 Lakhs**Ex-showroom price



FILE PHOTO: The logos of car manufacturers Fiat and Peugeot
FILE PHOTO: The logos of car manufacturers Fiat and Peugeot
FILE PHOTO: The logos of car manufacturers Fiat and Peugeot
FILE PHOTO: The logos of car manufacturers Fiat and Peugeot


In May 2019 Fiat Chrysler presented a proposal for a 50/50 merger with French leader Renault that would have created the world's third-largest automaker.

But Fiat abruptly withdrew the offer in June, frustrated with tensions between Renault's executives and the French state, which holds a 15 percent stake in the company and double the voting rights.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Renault's partners in Japan's Nissan were also furious at having been kept in the dark about the plan.

Renault-Nissan, tensions



File photo of the logo of the Renault-Nissan-Mitsubishi alliance
File photo of the logo of the Renault-Nissan-Mitsubishi alliance (REUTERS)
File photo of the logo of the Renault-Nissan-Mitsubishi alliance
File photo of the logo of the Renault-Nissan-Mitsubishi alliance (REUTERS)


In 1999 Renault acquired a 36.8 percent stake in Nissan, which was close to bankruptcy, and the Romanian brand Dacia.

Renault boss Carlos Ghosn succeeded in pulling the three together and became head of all of them in 2005.

A cross-shareholding deal put 43 percent of Nissan's shares in Renault's hands, while the Japanese group owns 15 percent of Renault.

In 2016 Nissan threw a lifeline to scandal-hit Mitsubishi Motors, buying a 34 percent stake giving it effective control.

Under Ghosn the Renault-Nissan-Mitsubishi alliance became the top-selling carmaker in 2017 with 10.6 million vehicles worldwide.

The auto chief's arrest in Tokyo in November 2018 on multiple charges of financial misconduct was a major blow to the already tense alliance, leading to a major leadership overhaul.

Former chief executive Hiroto Saikawa also resigned in September 2019 after an investigation prompted by the Ghosn scandal.

PSA buys Opel



File photo of Peugeot and Opel logos
File photo of Peugeot and Opel logos
File photo of Peugeot and Opel logos
File photo of Peugeot and Opel logos


In 2017 France's PSA -- which owns the Peugeot, Citroen and DS brands -- said that it would buy General Motors' European subsidiary, which includes Opel and Vauxhall, to create the second-biggest European automaker after Volkswagen.

PSA immediately embarked on a major overhaul that helped the business book its first profit in 2018 after years of losses.

In 2019 it speeded up its international expansion, returning to the Russian market.

Fiat rescues Chrysler



FILE PHOTO: A Mirafiori FCA worker walks at the Mirafiori industrial complex on the 80th birthday of the plant in Turin, Italy July 11, 2019. REUTERS/Massimo Pinca/File Photo
FILE PHOTO: A Mirafiori FCA worker walks at the Mirafiori industrial complex on the 80th birthday of the plant in Turin, Italy July 11, 2019. REUTERS/Massimo Pinca/File Photo (REUTERS)
FILE PHOTO: A Mirafiori FCA worker walks at the Mirafiori industrial complex on the 80th birthday of the plant in Turin, Italy July 11, 2019. REUTERS/Massimo Pinca/File Photo
FILE PHOTO: A Mirafiori FCA worker walks at the Mirafiori industrial complex on the 80th birthday of the plant in Turin, Italy July 11, 2019. REUTERS/Massimo Pinca/File Photo (REUTERS)


In 2009 Fiat struck a deal to rescue Chrysler by starting to purchase shares in the US group, originally taking a 20-percent stake in the third largest US automaker.

In 2014, when Fiat already owned 58.5 percent of Chrysler, it said it would buy up the remainder for $4.35-billion. The company became Fiat Chrysler Automobiles (FCA).

While it was struggling itself in 2000, Fiat agreed to hand over 20 percent of its shares to US giant General Motors but GM bailed out of the deal in 2005.

Volvo: Ford, then Geely



File photo of the Geely logo
File photo of the Geely logo
File photo of the Geely logo
File photo of the Geely logo


In 1999, when Ford was the most profitable US automaker, it bought Sweden's Volvo brand for $6.45 billion.

A few years later, however, a combination of Japanese competition and rising oil and steel prices convinced Ford that it was time to look for a new buyer.

In 2010 Ford sold Volvo to the Chinese group Geely for $1.8 billion, almost four times less than it had paid for the brand 11 years earlier.

DaimlerChrysler, bad marriage

Sign Technician Brian Bartkowiak carries away the DaimlerChrysler sign after removing it and unveiling the Chrysler sign in front of the Chrysler headquarters in Auburn Hills, Michigan August 4, 2007. REUTERS/Rebecca Cook
Sign Technician Brian Bartkowiak carries away the DaimlerChrysler sign after removing it and unveiling the Chrysler sign in front of the Chrysler headquarters in Auburn Hills, Michigan August 4, 2007. REUTERS/Rebecca Cook
Sign Technician Brian Bartkowiak carries away the DaimlerChrysler sign after removing it and unveiling the Chrysler sign in front of the Chrysler headquarters in Auburn Hills, Michigan August 4, 2007. REUTERS/Rebecca Cook
Sign Technician Brian Bartkowiak carries away the DaimlerChrysler sign after removing it and unveiling the Chrysler sign in front of the Chrysler headquarters in Auburn Hills, Michigan August 4, 2007. REUTERS/Rebecca Cook


In 1998 German group Daimler-Benz struck a deal to fold troubled US automaker Chrysler into its prestigious Mercedes brand.

It was presented as a merger of equals but Daimler invested $36 billion in the affair, and ran the show from the start.

But by 2005 the combination had soured and in 2007 Daimler sold most of its shares in Chrysler, ceding 80.1 percent to the US investment firm Cerberus Capital Management for 5.5 billion euros.

DaimlerChrysler changed its name back to Daimler.

First Published Date: 18 Dec 2019, 10:28 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city