The automobile sector is one of the most “rare” when it comes to forge strategic alliances. We have cases as rare, and disastrous, as the one that Daimler AG starred in with the former Chrysler LLC. But there are also others who, while seeming antagonistic, are more logical and sensible. One of the least known was the one that took place between Renault and the FCA Group in 2014. If you don't know what it is, just tell you that it gave rise to the birth of the Fiat Talento.
Its ratification served for the Italian firm to once again have an average commercial that gave I relieve the veteran, and spent, Scudo. At that time, the FCA Group did not reach an understanding with the PSA Group to keep their previous association active to develop the new Scudo, Jumpy and Expert. Well, the world goes around a lot and now the Italian-American manufacturer is about to merge with the Frenchman to give rise to Stellantis.
Renault will stop manufacturing the Fiat Talento before Stellantis is born
Therefore, it is illogical for Renault to keep the production of the Talent active and more when it is costing them a lot of money. This is what Clotilde Delbos, CEO of the French group, would have announced. According to her statement...
“We are putting an end to some contracts, including the one with Fiat” […] “Our sales to partners will continue to slow down and then stabilize at a level until we can sign new contracts”.
It seems that the reason for taking advantage of the situation and canceling the agreement has to do with the economic performance that they are obtaining. The associated profits would not be those initially planned and would be weighing down the global profitability of the French group. But it seems that it is not the only agreement that seems not to work quite well. Renault also manufactures diesel engines and other components for third-party partners..
In fact, these would not be responding as stipulated at the beginning either. So the question is as follows: If the FCA Group were not to merge with the PSA Group, what would have happened with this collaboration agreement? We do not know it well, but everything indicates that the Italians would have had to pull a new partner to give life to the Talent relief.
Source - Reuters