reaction on the stock market and reasons

John Elkann’s denial is immediate and clearCEO of EXOR, the Agnelli family’s safe, regarding the rumors relating to a hypothesis of fusion or alliance between Stellantis (union between Fiat and Peugeot) And Renault.

Market rumors, reported in the national press at the end of the weekend, had in fact hypothesized one partnerships or even a merger between the two groups, although the first hypothesis appeared the most persuasive. An operation which – according to market rumors – aimed at the creation of a large Italian-French group on the Airbus model, to withstand the competition against fierce Chinese competition and compete in an electrified market.

But Elkann reiterated that “There is no plan under consideration concerning merger operations of Stellantis with other manufacturers” and that “the company is focused on executing the strategic plan “Dare forward” and in the timely implementation of the projects announced to strengthen the activity in every market where it is present, including Italy”.

Yet operators from beyond the Alps had immediately bet on this hypothesis, pushing Renault shares, listed in Paris, to gain over 3% (now 0.85%), while Stellantis appeared more prudent with -0.31%. on the square in Milan.

Unity is strength

Just a couple of days ago the number one of Stellantis, Carlos Tavaresin an interview with Bloomberg, spoke about the need for sector consolidation automotive and the possibility of M&A operations that could involve Stellantis itself.

“The breadth of the Chinese offensive, the competitiveness they can demonstrate and the massive arrival of their best car manufacturers represent a significant change,” Tavares underlined, underlining that faced with this competition it is necessary produce BEV cars at competitive costs and “this means we have to be fit and ready. If these opportunities were to materialize, we want to be part of this consolidation. Those who haven’t done their homework to reduce costs are the ones who will get into trouble.”

The controversy with the Meloni government

At the same time, Tavares had not hidden a search anger towards Prime Minister Giorgia Meloni, who had criticized the Group’s decision to reduce production in Italy and move the factories abroad. The manager had openly criticized the line of this government, which did not offer incentives for electric cars, putting at risk the survival of factories such as Mirafiori in Turin and Pomigliano in Naples, where electric Fiat 500s are produced.

A canceled IPO for Renault

There Renault in the meantime he is looking for alternatives, after the recent one cancellation of Ampere’s IPOthe unit dedicated to electric cars whose listing plan had been announced only three months earlier. “We made a pragmatic decision”Renault CEO Luca de Meo had said, reiterating that all the objectives announced for Ampere are confirmed, including breaking even in 2025, but current market conditions have advised against listing at this time.