NEW YORK — Carmaker Fiat Chrysler Automobiles and French automaker Renault are in talks about a possible alliance, as both companies seek to address technological and regulatory challenges in the industry.
A person with knowledge of the matter confirmed the advanced discussions, first reported by the Financial Times. The person spoke on condition of anonymity because the negotiations have not been made public.
Fiat Chrysler has for months been the subject of merger speculation, with PSA Peugeot also reportedly interested in an alliance.
Fiat Chrysler CEO Mike Manley told analysts earlier this month that he expects further consolidation in the industry in the near-term.
The talks come as Renault seeks a way forward in its partnership with Nissan and Mitsubishi, frayed since the arrest of former Nissan chairman Carlos Ghosn in Japan.
Alexandra Olson, The Associated Press