Renault jumps into the mix for FCA

There must be something about the Mont Blanc tunnel linking France to Italy.

First the Turin-based Fiat Chrysler Automobiles was in the sights of the parent company of Peugeot and Citroen, PSA Group -- and now it’s Renault.

The world’s biggest car-making concern looks to have thrown its hat into the ring to buy the troubled FCA concern, but it’s still busy trying to sort out its own infighting.

FCA, which recently rebuffed a stock-only takeover bid from PSA, is the target of yet another French assault, according to the Financial Times.

Instead of joining with the PSA Group, the parent of Peugeot, Citroen and DS, to climb to nine million cars a year, FCA is now under the microscope of an automotive alliance that is already selling more than 10 million cars a year.

But first, Renault needs to succeed with the full merger plan it had for its alliance partner, Nissan, the paper explained.

That’s the same merger plan that saw the Nissan board allegedly stage a boardroom coup to oust the plan’s architect, long-term Renault impresario Carlos Ghosn.

The plan would further cement the relationship between the two firms, as well as Mitsubishi (currently on Nissan’s books).

Renault and Nissan recently created a new four-person board led by Renault’s chairman, Jean-Dominique Senard.

Swallowing FCA would pull the alliance clear of its annual struggle with the Volkswagen Group and Toyota for global leadership and hurl it into a rarified air all on its own.

It would increase its brand footprint from Renault, Alpine, Dacia, Nissan, Infiniti and Mitsubishi to include Jeep, Fiat, Alfa Romeo, Dodge, Maserati and the near-dead Chrysler and Lancia badges.

It wouldn’t be the first time Renault had tinkered with taking over FCA, either, with Ghosn approaching the company about three years ago.

Ghosn, free on bail on charges of financial misconduct in Japan, will not be involved in any reborn FCA takeover plan.

It’s long been known that FCA was for sale, with the only proviso of its late leader, Sergio Marchionne, and its current chairman, John Elkann, that it was a job lot, and that it could not be sold brand by brand.

The odd part of it all is that, once again, it seems like the minnow swallowing the shark. Twice.

Renault is the majority shareholder in Nissan, with 43 per cent, yet its market capitalisation is only about $US19 billion. Nissan is capitalised at $US35 billion, while FCA’s market cap is around $US23 billion.