Fiat Chrysler has pulled back its combination proposal for French car manufacturer Renault, according to the Italian-American enterprise. The declaration prompted a failed strive by Renault board members for reaching a decision on the offer.

Renault said it was unable to make a deal because French government representatives had urged a suspension. As the largest shareholder, the French government in Renault triggered a stake of more than 15%.

The Japanese car manufacturer also owns 15% of Renault, on the other side, Renault owns 43.4% of Nissan’s shares. The share price of Renault fell by almost 7% in response to the decision of  Fiat Chrysler. Fiat Chrysler made the offer for Renault at the end of last month, stating it as a “transformative” proposal which would create an international automotive leader.

Car manufacturers have confronted extreme pressure for merging amid vital industry shifts, along with towards electric vehicles.

Fiat Chrysler said in a statement, “ it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully”.

But the car manufacturer said it continued to exist “firmly convinced of the compelling, transformational rationale ” of the proposal, in the terms which were “ carefully balanced to deliver substantial benefits to all parties”.

Industry shiftings toward electric models, along with stricter discharge standards and the growth of the new technologies for the specific autonomous vehicles, have put escalating pressure on the car manufacturers for combining.

Most of the time huge indebted car-manufacturers are also confronting the rising competition from the latest recruits in the motoring sector including Tesla, and cash-rich companies evolving driverless technology such as Amazon and Google-led Waymo.

The Fiat Chrysler alliance with Renault would have permitted the companies for sharing the progress expense on the key technology such as electric vehicles, as well as self-driving cars for creating a vital player in the automotive industry.

The incorporation proposal came at the time while Renault had already had been confronting challenges as part of the alliance with Japanese car manufacturing company Nissan, Carlos Ghosn is expecting trial following his fourth arrest in Japan amid accusations of financial misconduct.

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