Two decades of tie-ups and break-ups among EU carmakers

phys.org | 4/26/2019 | Staff
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French auto giant Renault and Italian-US counterpart Fiat Chrysler are planning to announce an alliance, further reshaping Europe's auto sector which has already witnessed two decades of takeovers, alliances and break-ups.

Here is a look at other major deals, some of which floundered, beginning in the 1990s.

Group - Daimler-Benz - Deal - US - Automaker

In 1998 the German group Daimler-Benz struck a deal to fuse the troubled US automaker Chrysler with its prestigious Mercedes brand. It was presented as a merger of equals, but Daimler invested $36 billion in the affair, and ran the show from the start.

By 2005, the combination had soured; Daimler boss Juergen Schrempp stepped down and his successor, Dieter Zetsche, announced in February 2007 that Daimler would sell most of its shares in Chrysler. It did so three months later, ceding 80.1 percent to the US investment firm Cerberus Capital Management for 5.5 billion euros.

Group - Fiat - Agnelli - Family - Partner

In the late 1990s the ailing Italian group Fiat, which is controlled by the Agnelli family, went looking for a partner. In 2000 it agreed to hand over 20 percent of its shares to US giant General Motors.

But Fiat's situation did not improve, and in February 2005, GM bailed out of the deal, paying 1.55 billion euros to cancel a so-called put option that would have required it to buy the rest of Fiat's equity.

Fitter - Fiat - Deal - US - President

In mid-2009 a fitter Fiat struck a deal approved by US president Barack Obama to rescue Chrysler by starting to purchase shares in the US group.

In 1999, Renault acquired a 36.8 percent stake in the Japanese group Nissan, which...
(Excerpt) Read more at: phys.org
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