Rumors continue to circulate about a possible merger between Stellantis and Renault, which would create a massive mega-group ready to wipe out the competition. However, during a visit to the Stellantis plant in Sochaux, eastern France, Carlos Tavares, CEO of Stellantis, declared that these are “pure speculation.” Luca de Meo, CEO of Renault, also refused to comment on what he described as “rumors” during an event in Paris.
Stellantis and Renault, there will be no merger between the two automotive groups
Italian media continue to report that this merger would be a possible solution to address current market difficulties and the advance of Chinese manufacturers in the electric car market. The only way to face these challenges would be to merge two large automotive groups into one. However, it seems that this merger will not happen.
Stellantis has announced that it has cut its profit forecasts for 2024, saying it will consume more liquidity than expected to revive its activities in the US market, which is currently in extreme difficulty. The results for the third quarter of 2024 indicate that there has been a 20% drop compared to 2023, extremely disappointing results. For this reason, the automotive group’s shares have fallen by over 55% since March, recording the worst performance among European car manufacturers, reducing the company’s valuation by 47 billion euros (52 billion dollars).
This is not the first time that speculation about a merger between Stellantis and Renault has emerged. Already at the beginning of the year, Italian media indicated that the French government, Renault’s largest shareholder, was studying plans for a merger. Both Carlos Tavares and Luca de Meo will be present at the opening of the Paris Motor Show on October 14. When asked what he would say to Tavares during the event, De Meo replied: “I will greet him, as always.”
The CEO of Stellantis, during his visit to the plant in France, also discussed the future of the automotive group, including his position as CEO. The Portuguese manager stated that he could retire at the end of his contract in 2026, making room for a new CEO. President John Elkann is already looking for his replacement. However, there is also the possibility that Tavares will be reconfirmed.