A proposed merger that would see Italian-American automaker FCA and French company Groupe Renault join forces is receiving cautious optimism in Windsor.
“If a name plate went on that [Chrylser] Pacifica and they shipped it to the European market, we’re all for it right? I mean, that’s a big win,” said David Cassidy, president of Unifor Local 444.
The union, which represents about 6,000 workers at the FCA Windsor Assembly Plant, says the proposed merger with Renault announced on Monday hasn’t given members any initial cause for concern.
“If it was maybe something like we had before, you know some equity firm, but these people are car people and I think it's a positive for us — what I can see from the surface,” said Cassidy.
The combined company would become the third largest global car maker with vehicle sales of roughly 8.7 million and annual revenues of nearly $170 billion.
Bloomberg News auto reporter Tomasso Ebhardt says the merger w ould help solve a problem identified by the late Sergio Marchionne.
“This is clearly what in 2015, Fiat, through Marchionne, told analysts. This is a way to solve the so-called excessive use of capital,” said Ebhardt.
The former FCA CEO, who oversaw the revamp of Windsor Assembly to launch the Chrysler Pacifica, argued manufacturers were duplicating capital investments and wasting billions of dollars.
While the proposal outlines more than $5-billion in annual synergies, it also makes clear plant closures are not part of the plan.
“That puts people at ease because there's so much speculation out there,” said Cassidy.
Windsor's tool and die sector has positive memories of the merger ten years ago of the then separate Fiat and Chrysler companies.
Brian Bendig, president and CEO of Windsor’s Cavalier Tool, thinks there could be similar benefits again.
“It's not uncommon that they'll have two separate locations but, they usually start one platform in a single location, prove it out, get through the debugging process and such, gauge sales activity and volumes, and then duplicate that in another facility,” said Bendig. “There's certainly a benefit to doing that, there's spill-over business and frankly, it's good for the industry.”
While there is no indication the merger will mean a return of the third shift at Windsor Assembly, Cassidy says a merger would boost their hopes for a new product line.
“Give us whatever they want,” said Cassidy. “We will make sure that we put out the best product that we have.”
The merger is FCA’s effort to meet the auto industry shift to electrified and autonomous vehicles.
A final deal still needs to be negotiated and approved by both FCA and Groupe Renault boards — and ultimately by regulators.
In an email obtained by CTV News, FCA group CEO Mike Manley says it could take a year to form the new company if the merger is approved.