Stellantis and Renault Merger Rumors: A Tale of Speculation

Rumors of a possible merger between Stellantis and Renault have been dismissed as 'pure speculation' by Stellantis CEO Carlos Tavares. Renault's CEO Luca de Meo declined to comment on the conjecture which was reported to be gaining traction in Italian media, citing intense competition among automakers as a driving force.

Speculation about a potential merger between automotive giants Stellantis and Renault is making waves, but Stellantis CEO Carlos Tavares has dismissed such rumors as 'pure speculation.' His remarks were made during a visit to a Stellantis hub in eastern France.

Renault CEO Luca de Meo chose not to comment on the matter, as whispers of a tie-up have circulated following an Italian newspaper report. Economies of scale are cited as a motivating factor in managing competition challenges faced by traditional automakers.

Amid this backdrop, Stellantis reported a downward revision of its 2024 profit forecast and an expected increase in cash burn, primarily to reignite its U.S. business. The company's stocks have plummeted 55% since March, losing 47 billion euros in valuation.

(With inputs from agencies.)