Tavares Sees FCA “Takeover” in Merger with Renault

PSA Group CEO Carlos Tavares tells to his top executives that the proposed merger of Fiat Chrysler Automobiles and Renault would be a “virtual takeover of Renault by Fiat.”

Tavares’ own talks about merging PSA with FCA collapsed earlier this year. He grouses in a memo to executives that Renault’s depressed stock price makes FCA’s bid “opportunistic,” Bloomberg News reports.

Tavares also opines that merging FCA and Renault would weaken or even unwind the 20-year-old Renault-Nissan-Mitsubishi alliance. That partnership has struggled since Carlos Ghosn, the chairman of all three companies, was arrested on charges of financial misconduct at Nissan. Ghosn’s trial is expected to begin next year.