Renault and Nissan have set a two-year target to decide on a merger between them or find an alternative solution to boost their alliance, according to sources familiar with the matter.
Speaking to Bloomberg, the sources said that the solution would be found before Carlos Ghosn, the chairman of both car makers, is due to retire from his position at Renault in 2022. Ghosn has previously said that he may have to step down before his tenure ends.
The two car makers are in talks about the available options, including the creation of a holding company which will have Renault and Nissan under its umbrella. Back in March, a report said that the two companies were considering merging into a single stock, in a bid to pull resources better for the development of new technologies, like electrified vehicles and autonomous driving systems.
Ghosn has since pared down expectations of a quick deal to combine the two brands, saying that the spectre of failed mergers in the industry loomed large.
“The alliance is continually reviewing options for the evolution of our business,” said Jonathan Adashek, a spokesman for the Renault-Nissan-Mitsubishi alliance, in an email. “There are no changes to our operational or shareholding structure to announce, and no established timeline for this to occur.”
Ghosn, who is also chairman of Mitsubishi, said last month that the two Japanese companies won’t be taken over by Renault. The possible ways of sustaining the alliance between Nissan, Renault and Mitsubishi are many, he added. Renault currently owns 43.4 percent of Nissan, while the Japanese car maker owns 15 percent of Renault. Nissan owns 34 percent of Mitsubishi.
The alliance has a rather complicated structure; Renault also holds a large voting stake in Nissan, which in turn has no voting rights in Mitsubishi. Renault and Nissan have formed Renault-Nissan B.V., a joint company equally owned by Renault and Nissan, responsible for the strategic management of the alliance.