Fiat Chrysler proposed on Monday to merge with France's Renault to create the world's third-biggest automaker and combine their investments in the race to make new electric and autonomous vehicles. A deal would save 5 billion euros ($5.6 billion) for the merged companies each year by sharing research, purchasing costs and other activities, Fiat Chrysler said in a statement. The companies are largely complementary: Fiat Chrysler is stronger in the U.S. and SUV markets, while Renault is stronger in Europe and on electric vehicle developments. Investors were nevertheless enthusiastic, pushing shares in Fiat Chrysler up 11% and Renault 14% in European trading. The merger idea is the biggest corporate move so far by Fiat Chrysler CEO Mike Manley, who took his position after the unexpected death of the charismatic leader Sergio Marchionne last year.

Source: Fox News May 27, 2019 13:02 UTC