Fiat Chrysler Automobiles and the French carmaker Renault are holding discussions about a possible alliance aimed at strengthening both companies’ competitiveness in Europe and other parts of the world, a person familiar with the matter said on Saturday.
The talks are still in early stages and could still collapse, but they come amid dramatic technological and regulatory changes that are pressuring automakers and spurring some to join forces. Ford Motor and Volkswagen recently agreed to work together in pickup trucks and commercial vans and are in talks about combining their efforts to develop self-driving cars.
Both Fiat Chrysler and Renault have extensive operations in Europe, where tighter environmental regulations are forcing carmakers to invest billions in electric vehicles and other new technologies that cut tailpipe emissions. Both companies are struggling to gain ground in China, the world’s largest auto market, and have been slower than some rivals in developing autonomous vehicles.
Renault already has a global alliance with the Japanese carmakers Nissan and Mitsubishi, but the ties between the companies have frayed since last year when Carlos Ghosn, the former chief executive of both Renault and Nissan, was charged with financial wrongdoing in Japan and then ousted from his posts by both companies.
News of the talks between Fiat Chrysler and Renault was first reported by the Financial Times.