Think it’s about time for the Renault-Nissan-Mitsubishi Alliance to merge into one entity? Think again, says Carlos Ghosn.
“Anybody who will ask Nissan and Mitsubishi to become wholly owned subsidiaries of Renault has zero chance of getting a result,” the chairman of the alliance and CEO of Renault told Mitsubishi shareholders, according to Reuters.
Though the statement ostensibly precludes only Renault taking over its two Japanese allies, Nissan CEO Hiroto Saikawa also reportedly said that a “full merger” is not being discussed by the members of the alliance, in whatever form.
“We need to work together… to find a system by which what we have today, which is working very well, can continue in the future no matter who is leading the alliance,” said Ghosn.
Though incorporated separately, the three automakers share common ownership, leadership, and billions in syngergetic cooperation. It’s a unique arrangement that’s very different from the shared umbrellas that rival groups like Volkswagen, General Motors, or even Fiat Chrysler cast over their various brands.
The reciprocal ownership structure among the members of the alliance has Renault holding 43.4 percent of Nissan, and Nissan in turn controlling 15 percent of Renault. Nissan acquired 34 percent of Mitsubishi in 2016.
When tallied together, the combined sales of Renault, Nissan, and Mitsubishi would make the alliance the largest producers of automobiles in the world – just ahead of Toyota and Volkswagen. Counted separately, Nissan ranks as the sixth largest (behind Toyota, VW, Hyundai, GM and Ford), and Renault as the ninth (behind Honda and FCA).