What would be the disadvantages of a Renault-FCA merger?
We have seen earlier what the advantages of a Renault-FCA merger could be. Let us now take a look at the disadvantages of such a merger for the Renault group, and for the Renault-Nissan-Mitsubishi group.
1. This merger would lead to a new strategy for the Renault group, which would have to partner with a manufacturer with uncertain potential. Indeed, FCA has a incomplete range of models ,with hypothetical renewals. The Chrysler, Dodge, Lancia and Alfa-Romeo brands are under threat, Fiat exists only through the 500 range, its SUVs and its South American market. Only Jeeps and Rams are sold in large quantities. By partnering with Renault, FCA could, however, have a core range with significant potential (Clio, Captur, Megane, Kadjar), a very popular low-cost brand (Dacia), a strong presence on the Russian market (Lada) and electrical technology (Zoé) that FCA does not have.
2. Within the Renault-Nissan group, the addition of a group such as FCA would add an additional layer to an entity whose two main groups (Renault and Nissan) are not yet fully integrated, and which has not yet begun the technical integration process (platforms and engines) of the Mitsubishi brand.
3. Also, the presence of many brands in the newly created group would undermine the coherence of the entire model range, which would require substantial brand trimming.
4. Finally, the very large number of plants serving the group could threaten some of them, especially since FCA already suffers from overcapacity, particularly in Europe and South America.
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