How Renault, Fiat Chrysler could save through sharing

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How Renault, Fiat Chrysler could save through sharing
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If French automaker Renault green-lights a proposed merger with Fiat Chrysler Au...

- If French automaker Renault green-lights a proposed merger with Fiat Chrysler Automobiles, the companies almost immediately could begin saving money by consolidating components and basic structures on many of their most popular vehicles, an industry analyst said on Tuesday.

Renault and Italian-American rival Fiat Chrysler Automobiles are in talks to tackle the costs of far-reaching technological and regulatory changes by creating the world’s third-biggest automaker. Fiorani said Fiat Chrysler could benefit from sharing the French automaker’s expertise in electric vehicles and powertrains, where Renault and Nissan have jointly invested more than $5 billion. These are areas in which Fiat Chrysler has little in the way of components or intellectual property.

A hurdle to implementing the merger is all the intellectual property - including the CMF vehicle architecture - that is shared between Renault and Nissan, said Patrick Pelata, a veteran of the two automakers’ alliance who was formerly Renault’s chief operating officer.

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