Auto industry expert says workers can rest easy about FCA-Renault merger proposal

Fiat Chrysler Automobile's proposed merger with French automakers Renault may raise some concerns for potential job cuts, but an auto industry expert isn't worried.

"I've got to believe that it actually creates a more secure position, because it is one entity that can operate with greater efficiency than everybody trying to duplicate everything else," said Jason Stein, publisher of Automotive News.

FCA proposed the merger on Monday. Together they would make the world's third-biggest automaker, worth $40 billion.

The idea behind the merger is to be able to join forces in making electric and autonomous vehicle.

By sharing research, purchasing costs and other activities, Fiat Chrysler said it would save $7.5 billion each year for the merged companies.

"And operating as one entity, just becomes a lot more efficient as you're making those investments, because all these companies are making investments in the same technologies at the same time," said Stein.

Rneault is also Fiat's "European solution," said Stein, because it's currently "unprofitable in Europe." Meanwhile, Reault also doesn't have a market in the U.S. and SUV markets, unlike FCA.

According to Stein, this deal was unlikely when former FCA leader Sergio Marchionne and former Reault leader Carlos Ghosn were around because they supposedly didn't get along.

"They both have very powerful positions and powerful egos," said Stein.

Marchionne died due to illness last year and Ghosn is dealing with criminal charges in Japan.

In Windsor's plant, while the minivan sales are sagging, Stein said FCA is still operating a niche market and workers don't need to be worried.

"I think they can satisfy that niche successfully."