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Significance Speculation that Europe’s carmakers might be exploring partnerships to produce more affordable electric vehicles (EVs) and withstand global competition, particularly from China, spread after the French government was reported to be studying a Stellantis-Renault merger. However, such a European super-merger would be a challenging undertaking, amid upheaval driven by advances in EVs and other next-generation technologies. Impacts A mega-merger could lose competitive diversity in the European automotive landscape, adversely affecting competition and consumers. Appropriate oversight would be needed for consumers to reap the benefits of such consolidation efforts, not just shareholders. Auto mergers may suit individual platforms but not pooling advanced technologies, potentially the deciding factor for future consumers. A small EV segment supplied by many manufacturers could receive preferential treatment from regulators, further incentivising collaboration. EU investigation of cheap, subsidised Chinese EVs risks an all-out trade war in that sector, adding more uncertainty and complexity.
A Wed, study studied this question.