Fiat Chrysler cancelled its offer to merge with French automaker Renault, just days after the proposed deal was made public. FCA said that given politics in France, the French government's 15% stake in Renault would be a severe impediment.

"It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,'' Fiat Chrysler said. FCA will continue to deliver on its commitments through the implementation of its independent strategy.

Nissan, which has ties with Renault, was also negative about the deal.

FCA made the proposal in late May, suggesting the deal would generate significant supply chain savings and reduce development costs for new electric vehicles. The proposed merger would have created the world's third largest car manufacturer, behind Volkswagen and Toyota.

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