Fiat Chrysler (FCAU - Get Report) submitted a proposal to merge with Renault (RNLSY) . The joint organization would produce estimated sales of 8.7 million vehicles a year.

If the two auto companies go through with the merger, it would create the world's third largest carmaker behind Volkswagen ( VLKAF)  and Toyota ( TM - Get Report) . General Motors ( GM - Get Report)  would fall to fourth in the global rankings.
 
So what would this merger mean for major U.S. auto companies like General Motors and Ford ( F - Get Report) ? 

"I mean GM and Ford are doing quite well by getting out of areas that aren't profitable," Cramer said.

Action Alerts PLUS' Zev Fima followed up on that and asked Jim Cramer whether this merger was a reason whether or not to sell Ford and GM stock.

Cramer responded, "No, but I do like Ford."

Fiat Chrysler owns brands including Jeep, Dodge, Alfa Romeo and Maserati. Among its top markets is North America, where Renault does not have a significant footprint.

Related. Fiat Chrysler Pitch to Renault Would Create Third-Largest Automaker

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