Renault, Fiat Chrysler reportedly in deal talks for a major tie-up

Fiat Chrysler and Renault are in advanced talks for a deal that would combine major segments of their businesses, according to a report Saturday by the Financial Times.

A deal would help the carmakers tackle the slowdown in consumer demand for new cars.

Fiat Chrysler may also join the Renault-Nissan-Mitsubishi Alliance, which is pondering its future after Nissan's chairman was arrested and ousted last year.

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Fiat Chrysler is in advanced talks with Renault about a deal that would combine major parts of their businesses, the Financial Times and The Wall Street Journal reported on Saturday.

A tie-up would help the carmakers better tackle the challenges facing automakers including softer demand for new cars. There's no guarantee an agreement will be reached, but if successful, it will come together quickly, the WSJ reported.

Fiat Chrysler may eventually join the Renault-Nissan-Mitsubishi Alliance that was first created in 1999 as the auto industry went through a period of major consolidation, according to the FT.

That's because in addition to this tie-up, Renault is looking into options for the alliance's future following the high-profile arrest and ousting last year of Nissan Chairman Carlos Ghosn on allegations of financial misconduct. The Japanese car manufacturer said earlier in May that it was on track to record its weakest annual profit since 2008 following the upheaval.

Fiat Chrysler's inclusion would make the alliance the world's largest carmaker with 15.6 million in combined sales last year, according to the FT.

The alliance will meet for a board meeting on Wednesday, and its future is expected to be among the topics of discussion.

Read the full story on the Financial Times.