Now, it's Fiat Chrysler and Renault. Who could be next?
The proposed merger between Fiat Chrysler Automobiles NV and Renault SA would drive a “much needed” wave of consolidation among auto makers, analysts at Evercore ISI said in a note Tuesday.
“We applaud in its effort to drive much needed consolidation within the auto industry and believe this should ignite more rational industry behavior around allocation of capital, particularly in Europe and ,” the Evercore analysts said. It remains to be seen how compatible Fiat Chrysler and Renault are, with memories of the Chrysler and Germany’s Daimler AG DAI, -0.04% failed marriage between 1998 and 2007 “as a cautionary tale of what happens when two incompatible companies in auto come together,” the analysts said.
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