-2.1 C
New York City
Tuesday, October 19, 2021
Home Around-the-World Renault to End Van Collaboration with Fiat

Renault to End Van Collaboration with Fiat

Renault will stop making vans for rival Fiat Chrysler (FCA), its deputy chief executive Clotilde Delbos said on Friday, as the Italian carmaker finalizes a merger agreement with Peugeot-maker PSA Group.

In a deal forged under former Renault boss Carlos Ghosn, the French carmaker had been producing Fiat’s Talento vans at its Sandouville plant in France since 2016.

“We’re putting an end to some contracts, including the one with Fiat,” Delbos told a conference call following Renault’s trading update on Friday.

Renault’s sales to partners remained a weak spot for the carmaker even as it managed to reduce a drop in third-quarter revenues. The carmaker makes diesel engines for other companies and has several production collaborations, including with Japan’s Nissan.

“Our sales to partners will continue to slow and then stabilise at a low level until we are able to sign new contracts,” Delbos said.

PSA, is set to complete its tie-up with Fiat by the end of the first quarter of 2021.

Renault had taken over the contract to produce compact vans for Fiat in France from PSA in 2014.

It was not clear whether the Renault/Fiat contract was coming to its natural end or being terminated early. FCA declined to comment and Renault did not give further details.

Carmakers tend to strike production deals of this type to utilize their specialized factories as much as possible.

European Commission antitrust regulators, meanwhile, are examining FCA and PSA’s large market share in small vans and have expressed concerns on this front and could potentially request concessions in this area, sources have previously said. (Reuters)

All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contact: editor@motoringworldng.com

Leave a Reply

Most Popular

Carmakers Shift Up a Gear in Race to Go Electric

With electric car sales soaring and regulations increasingly favouring zero-emission vehicles, a flurry of announcements today (Monday) showed how the global auto industry has...

Weekly Review: NNPC Mulls Rebuilding Roads under Tax Credit Scheme

The Nigerian National Petroleum Corporation (NNPC) started its week with an engagement with critical stakeholders in a bid to find lasting solutions to the...

Ember months: FRSC Takes Campaign to Motor Park

The Federal Road Safety Corps (FRSC) RS7.22 Suleja Unit Command in Niger has begun ember months campaign to curb fatality during the period. A statement...

Hyundai Clinches Victory at FIA World Rally Championship

Hyundai Motorsport has taken its third victory of the 2021 FIA World Rally Championship (WRC) with a superb double podium finish in Rally de...
error: Content is protected !!
%d bloggers like this: