DETROIT – Fiat Chrysler says it has withdrawn offer to merge with France's Renault, according to the Associated Press.
Fiat Chrysler proposed a merger with French carmaker Renault aimed at saving billions of dollars for both companies.
Fiat Chrysler Automobiles said in a statement that the merged company would be 50 percent owned by FCA shareholders and 50 percent by Renault shareholders.
The companies were in discussions for weeks, as major world carmakers seek ways to save money amid the huge costs of pivoting the industry to electric and autonomous cars.
The French government, which owns 15 percent of Renault, is cautious about the new merger idea.
Fiat Chrysler released the following:
"The Board of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA), meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault.
FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.
FCA expresses its sincere thanks to Groupe Renault, in particular to its Chairman and its Chief Executive Officer, and also to the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal.
FCA will continue to deliver on its commitments through the implementation of its independent strategy."