In recent months, rumors about a potential merger between Renault and Stellantis have resurfaced, fueling speculation about the creation of a mega-group that could reshape the European automotive landscape.
This merger, which would unite 18 brands under one roof, could provide the economies of scale necessary to navigate the automotive sector’s current challenges, particularly the shift towards energy transition.
What do we know about this union?
The idea of this “Airbus of Cars” has long been appealing to political and industrial leaders, especially in France. Renault’s CEO, Luca de Meo, has been an advocate of this initiative. However, Carlos Tavares, Stellantis’ CEO, has voiced concerns about the potential homogenization of brands and models, fearing that a merger could stifle innovation by reducing competition. Tavares has also pointed out the risks of managing an oversized portfolio of brands.
Nevertheless, with the fast-paced evolution of the automotive sector, these concerns may be outweighed by the urgent need to reduce costs and compete with Chinese automakers. Renault has already partnered with China’s Geely through joint ventures, while Stellantis recently formed a partnership with Leapmotor. A merger could potentially position de Meo as the CEO of the new mega-group, should the deal materialize.
In the context of this potential merger, speculation is growing about a broader strategic alliance involving BMW. On October 15, a significant summit will be held, with de Meo, Tavares, and BMW’s CEO, Oliver Zipse, expected to participate. This meeting, taking place right after the Paris Motor Show (where Renault is set to unveil new electric models), could lead to the formation of a partnership aimed at consolidating the European automotive industry.
Such a three-way pact could enable Renault, Stellantis, and BMW to pool their resources and technologies, providing a united front in facing the challenges of electrification, increasing regulatory pressures, and competition from Asia. BMW, with its expertise in electric vehicles, could add a significant layer of strength to the alliance, potentially creating a more pan-European initiative.
It remains to be seen how the brands involved will manage their diverse portfolios. A combined group of 18 brands would be difficult to balance, especially with some of Stellantis’ weaker brands, such as Abarth and DS, struggling to maintain their market share. Additionally, managing overlapping models within a single group could present significant challenges, as seen with Stellantis’ current lineup, where Peugeot, Opel, and Fiat models often share platforms and production facilities.
While the possibility of a Renault-Stellantis merger remains speculative, the upcoming weeks could provide clarity on whether this ambitious vision of an “Airbus of Cars” can become a reality. Whether through a merger or a strategic alliance, the European automotive sector appears to be heading towards a more collaborative future in order to survive in an increasingly competitive and evolving market.
The next few weeks will be critical in determining whether this vision becomes a reality, with the Paris summit likely to serve as a decisive moment in the future of the European automotive industry.
