Stellantis CEO Carlos Tavares on Thursday dismissed rumors of a potential merger with Renault as “pure speculation” during a visit to one of the French-Italian automaker’s hubs in eastern France. His comments came in response to growing media reports suggesting a tie-up between the two automotive giants.
Meanwhile, Renault CEO Luca de Meo, speaking at an event in Paris, declined to comment directly, saying, “I don’t comment on rumors,” when asked about the possible merger. Italian newspaper Il Sole 24 Ore had earlier reported that discussions of a merger were becoming more persistent, with economies of scale seen as a potential solution to the challenges traditional automakers face amid increasing competition.
Stellantis has been facing financial headwinds, with the company cutting its 2024 profit forecast earlier this week and warning it would burn through more cash than anticipated as it attempts to revive its U.S. business.
Shares of Stellantis have plummeted by more than 55% since March, wiping out âŹ47 billion ($52 billion) from its valuation, making it the worst-performing stock among European automakers.
Speculation about a possible tie-up between Stellantis and Renault had surfaced earlier in the year when Italian media suggested that the French government, which is Renault’s largest shareholder and holds a stake in Stellantis, was exploring the idea of a merger between the two companies.
Both Tavares and de Meo are scheduled to attend the opening of the Paris Motor Show on October 14. When asked about potential discussions with Tavares at the event, de Meo responded, “I will greet him, as always.”
