Possible Renault-FCA Merger Could Spell Trouble For Nissan

Even though it’s unknown whether or not Renault will even further entertain negotiations with FCA regarding a proposed 50-50 merger, such a deal going through could potentially spell trouble for Nissan.

The Japanese automaker repeatedly pushed back against Renault’s efforts to tighten up their alliance, and if the latter was to accept a 50-50 split with Fiat Chrysler Automobiles, it could marginalize Nissan as far as certain markets are concerned.

Take for example the United States, where FCA is much stronger than Nissan when it comes to the light trucks segment, despite Nissan investing a lot in redesigning its Titan full-sized pickup. Meanwhile, FCA’s RAM pickup recently surpassed the Chevy Silverado to become the 2nd best-selling light truck and 2nd best-selling overall vehicle in the U.S.

Another issue would be that a united Renault-FCA could weaken Nissan’s bargaining power if the carmaker ever decides it wishes to renegotiate its current status.

Also, the new company’s structure would dilute Nissan’s managerial leverage with 11 total board members of which only one would represent the Japanese brand, as reported by Autonews Europe.

Also read: Renault Will Decide Next Week Whether It Will Pursue FCA Merger Talks

“It shows that Nissan isn’t the only date in town,” said Christopher Richter, a senior automotive analyst with CLSA Asia-Pacific Markets. “Having been spurned a couple times, Renault is looking around for a new partner. This changes the dynamic for Nissan in several ways.”

While both Nissan and Mitsubishi could expect to earn an additional 1 billion euros thanks to the addition of FCA, the latter only mentioned the two briefly in its description of the deal.

“FCA looks forward – as part of a combined enterprise with Groupe Renault – to working with Groupe Renault’s Alliance partner companies on ways to create additional value for all Alliance members,” stated Fiat Chrysler. “FCA recognizes the standing and achievements of Groupe Renault’s partners and sees significant expected benefits to all parties from the expanded partnership.”

Still, two areas where Nissan could maintain its status within a revamped alliance would be with electrified vehicles and autonomous driving – none of which are strong suites for FCA at the moment.

  • Navigator Navy✓ᵛᵉʳᶦᶠᶦᵉᵈ

    I think Chevy will rushed and refresh the Silverado sooner than expected to keep up with the better looking Ram.

    • Mike anonymous

      Chevy has been doing that for years. They did it when the new (current) generation F-150 first came out, they refreshed the Camaro with a refreshed 5th gen when the new (current) Mustang came out, etc.

      GM seems to be more reactionary to the market and their competitors.

      • helloWorld

        that’s what happens when they hire real people to run the company, instead of car people

        • Mike anonymous

          LOL sorry I laughed a little bit at this, I am not sure if it was intentional on your end of things, but I immediately though of the Chevrolet “Real People, Not Actors” Commercials When I Completed Reading Your Reply/Post.

          https://uploads.disquscdn.com/images/8164992641a58a558b56cc704834a73d1374771ab597e3ccdc9ac59221b93749.png

          On a separate note, it is understandable why ‘real people’ are hired to run companies and they are people who seem to be experienced in the world of business. I would like to think (& not to say those who run Chevy/GM are/are-not) that people who run a company should be passionate about not only what they do, but what their company does (and/or creates).

          The Passion, Care, & Love, that you put into things, will always show.

  • CarCzarDesigner

    This is all speculation at this point. This merger is being sold on the belief that all members will benefit. This will allow each brand to reorganize, share information & technologies, cut duplication, cut expenses, duplication and waste. Plus we could also see a much improved and better Renault selling cars again the US. I am all for it!

  • Able

    Ghosn must’ve opposed a merger like this…

  • ThatGuy

    This is the third FCA-Renault post or is it the Fourth, anywho i seen a slight consensus with people, myself included, seeing NIssan want a way out.
    Maybe one the deal happens Renault might feel out Nissan and if need be set them free. If they do i have a feeling Mitsubishi would want to go with Nissan and be super best friends somewhere else.

    But i hope this happens and the platform sharing begins for Chrysler, Fiat, Alpha and Lancia.
    As for Ram and Jeep the need to branch off in their development and just use the synergy to develop, and get better reliability.

    I hope this a good turn around and not a new tale of GM and the happening there.

    • Liam Paul

      Nissan and Mitsubishi have nothing of real value in the USA. let them go I agree, get rid of dead weight

      • ThatGuy

        I have seen how their offering is quite bad for the US, in our market and Europe they fair better, but for Mitsubishi its the Outlander and ASX and the Qashqai, X-Trail and New Nissan Micra do fairly well.

        But Renault does way better than both in all Markets.
        Liam look at the Renault Koleos, Clio, Megane and Duster, all share components with the Nissan brothers but come in a way better package and to be honest since 2009 renaults cars have been very reliable. Unfortunately in some markets dealer networks are an Issue but those are very small.

        Essentially Renault worked with Nissan increased their reliability and still did their own way, They dont really have a CVT other than in the Koleos its sister. Their EDC transmission are real good and i can vouch for that, as in very close to DSG good, obviously its set up a renault way.

        Now take that recipe and put it into Chrysler and Dodge and i can see ranges growing, reliabilty increasing and better designed cabin, more for the Dodge, i like Chrysler interiors, pity they pulled out of our marker with Dodge, but we get Jeep, Fiat and Alfa.

  • Mr. EP9

    Nissan is going to vanish like a thief in the night. If ever was a time for them to head for this hills and get out while they can, it’s now.

  • Liam Paul

    I bet you a dime, Nissan’s head thief Hiroto Saikawa is having bad heartburn today. This now after his obvious coup of Carlos Ghosn to avoid being controlled by another company, if this happens, they go from what having 40% say to like 1 % say if I am reading this right

  • Сафиуллина-Мохамед Рамазанов

    Nissan shall leave all this mess once and for all if it really happen

    • designer_dick

      I think it’s more likely that Renault will choose to wash its hands of its uncooperative Japanese ‘partner’, rather than Nissan boldly deciding to leave of its own accord.

      • Andys

        if they leave they have to pay lots of cash..

      • Сафиуллина-Мохамед Рамазанов

        all what Nissan wanted from day 1 is either

        A) the French government sold its share in Renault to Nissan to be equal shares in eachother

        Or

        B) Renault sell back some of shares they take in Nissan to also be equal in eachother

        So either A or B Nissan wanted equality in a cooperation they have the upper hand in R&D and Quality management over their partner, which is so very much logic

        When Renault take Nissan shares all what Renault offers was the money, only the money, and in return they became more reliable , more solid future proof , got a really good new character and all that because of Nissan, so at least Renault must be fair

  • Alduin

    Nissan needs to leave this “alliance” and take Mitsubishi with them.

  • Six_Tymes

    WRONG, Gohen ONLY wanted a merger with Renault and NOT with FCA, the other board members got mad at him for that plan.

  • Six_Tymes

    Dumbest move ever was getting rid of Ghosn, their most import human asset. Not unlike many years ago in the 90’s, when apple “executives” fired Steve Jobs! Absolute idiots!

  • Tan Lee

    Panic settling in @ NISSAN. They thought they were the big dog in the Alliance Never expecting Renault would look elsewhere but that is exactly what has happened. This is a good move for Renault but also risky as many other car makers have avoided Partnership with FCA.

    I do think we are witnessing a ‘Apple firing Steve Jobs moment’ at NISSAN.

  • MarkoS

    I see all kinds of opportunities for all companies involved.

  • helloWorld

    so the Frankenstein dealerships is now going to be jeep, chrysler, dodge, ram, fiat, renault, peugeot, alpha romeo, maserati? the car sales dude near me already struggles to sell 7 brands. expanding it to 9 isn’t going to help with sales.

  • Tan Lee

    I think the Chinese predators are waiting for their prey. Once Nissan starts to crumble the Chinese i.e Geely will pounce.

    • ThatGuy

      Tan Lee i agree 100 percent with you. Zhejiang Geely Holding Group Co., Ltd have a massive portfolio already. Lotus, Lynk & Co, Proton and Volvo and they will as you said snap up Nissan.
      I used to have my biased against Chinese Brand cars, but they have come a very long way.

      Their reliability is very good these, besides the Tech i.e. Volvo Center Console. And when they were using those Toyota and Mitsubishi engines, they did further R&D and today are up there.
      Look at Geely’s new cars, they look real good.

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