The new partnership would be a 50/50 deal, aimed at reducing costs through lower development costs and greater platform efficiencies.
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Fiat Chrysler has proposed a €32.7 billion ($52.7 billion) merger with Renault, in a move that could reshape the global automotive landscape.

Groupe Renault's board of directors will meet to discuss the proposal, which would have Renault and FCA each owning 50% of the business.

With combined sales of around 8.7 million cars per year, the partnership would be the third largest carmaker in the world behind Volkswagen and Toyota. It's worth bearing in mind, the Renault-Nissan-Mitsubishi Alliance reports combined sales.

By that metric, it's the largest carmaker in the world ahead of the Volkswagen Group and Toyota Motor Company.

Those sales would be across a huge range of marques, including rough-and-ready Dacia, all-American Dodge, and the legendary Ferrari brand.

FCA estimates the merged carmaker could cut the number of vehicle platforms within the pairing by 20% and the range of engine families by 30%, as well as cutting costs through purchasing and development savings.

"The benefits of the proposed transaction are not predicated on plant closures, but would be achieved through more capital efficient investment in common global vehicle platforms, architectures, powertrains and technologies," Fiat Chrysler said in a statement.

"FCA has a history of successfully combining OEMs with disparate cultures to create strong leadership teams and organisations dedicated to a single purpose."

According to the Financial Times, a deal between FCA and Renault would spell the end of a potential merger between Nissan and its French alliance partner. It also raises fresh questions about Nissan's influence in the Alliance.

Renault's relationship with Nissan has been on the rocks since Carlos Ghosn's arrest. Renault has expressed its desire to merge with its Japanese partner, while Nissan remains resistant to anything that'd give Renault greater influence.

Renault shares jumped by 13% on the Paris Stock Exchange when the proposal was announced, while Fiat Chrysler stock rose nearly 18% in Milan.