Fiat Chrysler Automobiles (FCA) has withdrawn its merger proposal to French automaker Renault.
FCA's Board of Directors made the decision at its meeting Wednesday night.
In a statement issued Wednesday night, FCA said it has become clear that the political conditions in France do not currently exist for such a merger to proceed successfully.
Fiat Chrysler added it remains firmly convinced of the "compelling and transformational rationale" of the proposal that has been "widely appreciated" since it was submitted.
FCA submitted the proposal May 27.
The idea was to join forces and save both companies billions of dollars as the industry transitions to electric and autonomous cars.
FCA said the merged company would be the world’s third largest automaker and be 50 per cent owned by Fiat Chrysler shareholders and 50 per cent by Renault shareholders.
The companies had been in discussions for weeks to identify products and geographies where they could collaborate, particularly as they develop and commercialize new technologies.
The North American automaker said the structure and terms of the proposal were carefully balanced to deliver substantial benefits to all parties.
FCA goes on to thank Renault for its constructive engagement on all aspects of the proposal.
"FCA will continue to deliver on its commitments through the implementation of its independent strategy," FCA said.
