Initiated by Fiat Chrysler (FCA), the tie-up would create the world’s third-largest carmaker (behind Toyota and Volkswagen) with annual sales in the vicinity of nine million units. Both sides plan to leverage the benefits of economies of scale to save a substantial amount of money as they navigate fast-approaching changes in the automotive industry.

On paper, the merger makes a surprising amount of sense. Renault is strong where Fiat Chrysler Automobiles (FCA) is weak, like in Europe and in electric vehicles (EVs). The opposite is also true; FCA enjoys a sizable presence in North America and it benefits from decades of truck- and SUV-building experience.

The union would seemingly create a global car giant with more strengths than weaknesses but several other factors come into play. Renault notably has a long-standing alliance with Nissan which recently turned sour, neither company has managed to nail the ever-important Chinese market, and both struggle in the luxury car segment. While executives are deliberating, we’re examining the cards at play and looking at what’s at stake: