Volkswagen and Fiat Chrysler could face penalties of up to 1.83 billion euros (1.64 billion pounds) and 746 million euros respectively, if they fail to meet the European Union’s emissions targets set for 2021, according to AlixPartners.
Italian-American carmaker, Fiat Chrysler, withdrew Thursday its proposal to merge with Renault, blaming “political conditions” in France.
Renault officials on Wednesday sought to reassure the firm’s alliance partner Nissan over a possible tie-up between the French automaker and Fiat Chrysler, which could up-end the auto industry.
French automaker Renault said on Monday that it would study “with interest” a 50-50 merger proposal from Fiat Chrysler, a deal that could reshape the industry as Renault reviews its options following the arrest in Japan of its chief executive.
French carmaker Renault is in talks with Fiat Chrysler Automobiles with the long-term prize a world-leading alliance including Japan’s Nissan and Mitsubishi, reports say.