FILE – In this Feb. 14, 2019, file photo, this is the Fiat logo is mounted on a 2019 500 L on display at the 2019 Pittsburgh International Auto Show in Pittsburgh. French carmaker Renault looks set to give its approval to Fiat Chrysler’s merger offer. The company’s board is meeting Tuesday June 4, 2019 afternoon at its headquarters outside Paris to decide on a deal that could reshape the global auto industry. (AP Photo/Gene J. Puskar, File)Fiat Chrysler and the French government reached a tentative deal Wednesday on terms for the carmaker’s potential merger with France’s Renault, according to a person briefed on the matter.
The person said the deal was a good sign for the merger plan, but no guarantee it would be approved. The person didn’t want to be identified because Renault’s board was still meeting to discuss the proposal.
A merger would create the world’s No. 3 car company after Volkswagen and Toyota, and could reshape the industry as carmakers race to make electric and autonomous vehicles.
Fiat Chrysler has proposed merging with Renault to create a company worth almost $40 billion that would produce some 8.7 million vehicles a year.
Renault’s board met outside Paris to discuss Fiat Chrysler’s offer but no decision had been announced as midnight neared. A similar meeting Tuesday ended inconclusively.