AutoBeta(AutoBeta.net)06/08 Report--

Italian Deputy Prime Minister Luigi Dimayo publicly criticized the French government for blocking the merger of Renault and Fiat Chrysler on June 7 local time, Reuters reported.

Luigi Dimayo, Italy's deputy prime minister and minister of industry, said: government intervention was the reason for the failure of the [Fiat-Chrysler and Renault] merger, and Renault was not satisfied with it. This would have been an open market operation that would have benefited Italy and the Italian people.

He said the French government had a negative impact here. This should be an open market operation, and we should respect the open market operation. In addition to keeping in touch with Fiat Chrysler and its executives, we respect the group's business decisions.

On June 6th, Renault CEO Dominic Senard held a shareholders' meeting on the proposed merger with FCA 50, but representatives of the French government asked for a postponement of the vote and the board was unable to make a final decision. The French government, which has a 15 per cent stake, has expressed support for allowing the merger to proceed under conditions, but the future is to ensure that the alliance between Renault and Nissan continues to exist, otherwise it will not agree to the decision.

It is reported that two members of Nissan's board of directors at Renault vetoed the merger proposal, which, if passed, would lead to the breakdown of the unstable Nissan-Renault alliance. As early as May 29th Nissan CEO Hiroshi Nishikawa said that the planned merger of Renault and FCA did not have any negative impact.

The plan to merge the two sides to form the world's third-largest auto group failed, but neither side performed optimistically in 2019. In the first quarter of 2019, Fick's revenue fell 5% year-on-year to 24.5 billion euros, while pre-tax profit fell 29% year-on-year to 1.07 billion euros. Renault's revenue fell 4.8 per cent to 12.527 billion euros in the first quarter of 2019.

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