International Automakers Vying to Purchase Fiat-Chrysler
AutohausAZ, a leader in high-quality Land Rover auto parts online and other luxury car parts, is pleased to provide you with exciting news and important information regarding the world of automobiles. In this post, we will discuss the possible merger between various leaders in the car manufacturing industry, which has the potential to rock the car market worldwide.
Fiat-Chrysler Automobiles (FCA), a power duo in the world of automakers, is currently the target of two international car manufacturers, Peugeot and Renault-Nissan, which seek to buy the Italian-American car maker. FCA appeals to both potential buyers because of its 12 percent stake in the North American auto market. If purchased, the sizable influence FCA has in North America would open the successful interested party to a market in which momentum seems to be slipping or nearly nonexistent. Across the pond, Europe’s stricter emission regulations are causing automakers such as Ford, Honda, and GM, to downsize or pull out of the European market, thus providing a gap that the successful bidder with Fiat-Chrysler could fill, making it a desirable combination.
So, which international automaker would make the most sense? And which is most likely to act on the opportunity?
On the one hand, we have Renault-Nissan, a sizable French-Japanese car manufacturer, that is currently amid merger agreements with Nissan; and, on the other hand, we have Peugeot, a European company that seems to be just that: a European company.
At this time, Renault-Nissan is one of the world’s largest and most successful automakers, but it has aspirations to rival both Toyota and the Volkswagen Group by capturing a considerable presence in the North American market. If successful, the company will be four huge manufacturers strong, allowing it to rise higher in the global market. However, it is likely that Renault must first decide on a full merger with Nissan, or to scale down their stake in Nissan and reinvest in Fiat-Chrysler. Either decision will take time, so the company is left in an awkward limbo for the time being.
Peugeot has been criticized for considering to make this bid for the simple reason that 90 percent of all its sales are made in the European auto market. This criticism is understandable because Peugeot’s limited exposure in the North American market makes the chances of a successful merger seem low. However, if we think in this way, we are left with the question that plagues recent college graduates attempting to secure a job: how can we gain experience without first being given the opportunity to gain that experience? On paper, Peugeot’s wish to expand and diversify its geographical influence by merging with FCA is a logical step for the company, but the concerns about “lack of experience” holds water as well.
It looks as if, for the time being, the FCA merger is still up in the air. Renault-Nissan is not in a viable position to make any moves until it knows what it wants and acts on it, and Peugeot’s minimal influence in North America makes a merger with Fiat-Chrysler very risky.
We at AutohausAZ are excited that you, our readers, take a deep interest in the world of automobiles, and we look forward to continuing to provide our customers with high-quality Porsche and other luxury car parts online for competitive prices.
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