Fiat And Renault: Is It A Done Deal?

It would be the first European carmaker with the heft of GM or Toyota

At a Mar. 11 Renault board meeting in Paris, directors questioned Chairman Louis Schweitzer about rumors in the Italian press that Renault would soon join forces with Italian auto maker Fiat. Schweitzer told his board that the reports were "fantasy." But at least one member wasn't convinced. Gerard Muteau, a union official who represents labor on the board, recalls that when Renault was negotiating an alliance with Volvo in 1990, rumors in the Swedish press were similarly denied by the French company's top management. "Three or four months later, Renault and Volvo announced their agreement," says Muteau.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.