Rumours of a possible merger between Stellantis and the Renault group surfaced recently and have, understandable, caused quit a fuss.
However, if the heads of the two companies are to be believed, the whole thing is much ado about nothing.
Stellantis CEO Carlos Tavares, CEO dismissed the reports as “pure speculation” during a visit to one of the group's plants in eastern France, as reported by Automotive News.
Luca de Meo, Renault's CEO, was even more dismissive, refusing to comment on what he called mere “rumours”.
There has been speculation since earlier this year of a possible merger, but that was rekindled via an article published this week by an Italian newspaper. Il Sole 24 Ore reported that discussions concerning a merger between the two companies had become more persistent. The economies of scale of a potential merger were seen as a possible solution to managing the fierce competition experienced by all manufacturers across the industry.
At Stellantis, as we've reported a few times in recent weeks, things aren't particularly rosy at the moment. The manufacturer's shares are in free fall, having dropped 55 percent since March. The company has lost 47 billion Euros in value.
It’s a safe bet that at the forthcoming Paris Motor Show, which gets underway on October 14, and where Carlos Tavares and Luca De Meo will be present, the issue will come up again. Expect the two executives to be besieged by media.
