Stellantis Doesn’t Want Renault In Its Inner Circle

Any hopes that Renault’s new 5 Turbo 3E electric pocket rocket could underpin the next-generation Fiat 500e may go unrealized for now, as Stellantis chairman John Elkann has once again denied rumors that the company is close to a merger with Renault. Speaking at the Financial Times’ Future of the Car Summit in London, UK – ironically alongside Renault CEO Luca de Meo, who was in the same panel discussion – Mr Elkann, according to a short report by Reuters, stated only that “we are not discussing any merger.”

Suggestions of a potential merger between the two parties were similarly quashed in October when former Stellantis CEO Carlos Tavares called rumors “pure speculation.” And yet the rumors refuse to go away entirely.

How Rumors Of A Stellantis-Renault Merger Began

Suggestions of a potential merger between Renault and Stellantis – the latter created, tellingly, by the amalgamation of Fiat Chrysler Automobiles and the Peugeot-Citroën Groupe PCA in 2021 – began in early 2024, based on reports in the Italian media. These suggested that such a move would not only create a European “superpower” designed to decelerate European sales of the likes of Toyota, Hyundai/Kia, and fast-encroaching Chinese automakers, but also potentially dethrone the Volkswagen Group as Europe’s leading carmaker. Italian reports even suggested BMW as a left-field third partner.

Further fuel was added when the Renault Group’s long-standing alliance with Nissan, which began in 1999 and expanded when Mitsubishi joined the fray in 2016, was heavily restructured for 2024 onwards. Whilst not officially severing ties – Nissan’s next compact EV will be based on the new-for-2026 Renault Twingo – the new agreement introduced a notable distance between the two brands.

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Interestingly, also at the FT summit, both Elkann and De Meo hit back at European Union regulations that “encourage” OEMs to sell a higher proportion of electrified vehicles, and thus abide by ever-stricter CO2 emissions regulations, suggesting the investment required to do so is driving up the price of new cars and ultimately discouraging new owners.

How A Renault-Stellantis Merger Could Come Together

Ironically, while Renault recorded a 3.5 percent rise in operating profits over 2023, Stellantis suffered a 15 percent drop in sales in 2024, with Fiat the only brand in the black with a strong 154 percent increase in sales (after a difficult opening three quarters of 2024, Tavares had already resigned). Moreover, having previously stated when the FCA-PCA merger first took place that its brands would be financially secure until at least 2030, Stellantis could start reviewing its 14-brand portfolio as early as next year to offset its poor sales.

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This could potentially lead to some brands – notably Chrysler – facing the chop, and even opening the door for Renault, like Fiat, a quirky European manufacturer well-known for its characterful city cars and unlikely to make an expanded jump to North America any time soon. Such a move would likely be heavily supported by the French government, which currently owns 15 percent of Renault and holds a 6.1 percent share in Stellantis.

Source: Reuters