Renault, Fiat Chrysler in tie-up talks

French and Italian-US auto giants Renault and Fiat Chrysler are set to announce talks on an alliance, with a view to a potential merger, informed sources said on Sunday.

Renault and FCA are likely to unveil the move "within hours, perhaps tomorrow (Monday), before the (Paris) bourse opens," one of the sources told AFP on condition of anonymity, adding an eventual "merger" was on the agenda.

The same source added that a statement would cover "the possibility of a convergence between the two groups" which "will be studied" with a view to a potential merger.

A Renault board meeting is scheduled for 8:00 am (0600 GMT) on Monday.

Renault's current major partnership is with Japan's Nissan, in which it holds 43 per cent.

Nissan in turn owns 15 per cent of its French partner Renault but the imbalance in the relationship has led to serious friction, highlighted by the arrest of former Renault and Nissan chief Carlos Ghosn in Tokyo.

The Financial Times reported Saturday that the Renault-FCA discussions were at an "advanced" stage and could lead to "extensive cooperation".

The Wall Street Journal said the talks were "wide-ranging" and could include Renault and Fiat Chrysler "joining large portions of their businesses".

However, The New York Times took a more cautious line, saying the discussions were in early stages, the specifics unclear and "could still collapse".

Contacted by AFP, neither Renault nor Fiat would comment.

The Financial Times, quoting multiple people informed on the talks, said:
"The question now is 'what is the reaction of the Japanese going to be?" said one source close to the issue, suggesting they could be "furious."