Stellantis Denies Rumoured Renault Merger

Rumour has it that the French government is considering merging the Stellantis and Renault Groups to form a new, massive auto company to compete with competitors in China and Europe.

"There is no plan under consideration regarding merger operations with other manufacturers," stated John Elkann, chairman of Stellantis, in a statement.

However, Carlos Tavares, the CEO of Stellantis and a veteran of decades at Renault, has also made recent, general remarks regarding mergers that some industry observers have interpreted as a sign of an impending union.


Stellantis' brands include Peugeot, Citroen, DS, Alfa Romeo, Fiat, Abarth, Jeep, Lancia, Maserati, Opel, Vauxhall, Chrysler, Ram, and Dodge.
Government analysts believe that by banding together, the Stellantis-Renault group could reduce the market share of its German competitors while solidifying its hold on Europe and putting itself in a stronger position to repel fresh opposition from China.

Following the merger rumors, Renault shares surged by 4%, and their value increased by an additional 1% following Elkann's remarks, indicating that investors found the rumors to be believable.

Renault's decision to withdraw from the Russian market and cut its ties with Nissan has weakened the company and made it appear vulnerable. However, analysts contacted by Reuters explained that a Renault-Stellantis merger would only increase overcapacity in Europe, so they didn't necessarily think it made sense.