Nissan Understands Benefits Of Potential Renault-FCA Merger, Yet Remains Noncommittal

Despite understanding the potential benefits brought on by the proposed merger between Renault and Fiat Chrysler Automobiles, Nissan chooses to remain noncommittal until it can make sure that its interests are protected.

That was the message communicated by the company’s CEO Hiroto Saikawa in his first official statement regarding the merger. He also knows that working with FCA could “expand the playing field for collaboration and create new opportunities for further synergies.”

Yet, he also feels that Nissan needs to look out for itself before fully supporting the tie up between the two European automakers, as reported by Autonews Europe.

“From the standpoint of protecting Nissan’s interests, Nissan will analyze and consider its existing contractual relationships and how we should operate business in the future,” stated the brand’s CEO, who also cautioned that a full Renault-FCA merger would “significantly alter” the structure of its 20-year alliance with the former.

So to go ahead with merger talks would also require a “fundamental review” of the ties between Renault and Nissan.

Also read: FCA Discussing Revised Renault Merger Plan To Win Over French Government

FCA’s initial proposal was for a 50-50 split between themselves and Renault, without directly addressing the French automaker’s existing alliance with Nissan and Mitsubishi – although the Japanese brands weren’t excluded from the plan.

Currently, Renault owns a 43% stake in Nissan, whereas the latter holds only a 15% stake in Renault with no voting rights. However, FCA’s proposal would give Nissan a seat on the new holding company’s board, plus a 7.5% stake with voting rights.

  • Six_Tymes

    Without Carlos Ghosn, I give Nissan 5-10 years from now, watch them stumble big time. Not saying they will go under, just staying they will make some bad moves and have a hard time recovering. Carlos Ghosn saved that company from going under, in a very short period of time he alone turned that company around.

    • DetrinKD

      Sorry, while what he did with Nissan in the beginning of its turn-around was awesome, his later decisions have placed Nissan in the position they’re in now. I found it odd how he tried to blame the current state of Nissan on Saikawa when he has not been in the position long enough to have influenced product that is on lots now. I have been a Nissan/Infiniti fan for as long as I can remember but there is nothing I just want to buy currently. And the main reason being CVTs. That shift was made under his leadership and most of Nissans reliability issues stem from it. And it was Carlos’ hunger for market share that has put Nissan in the position of having to ween customers off of huge discounts. Now because sales and profitability are down, Carlos wants to blame it on Saikawa. He’s trying to right the ship and redeem any kind of brand equity and profitability even if it means less sales. I also believe the behind the scenes tension and drama has caused a lot of product development and launch delays, with Infiniti taking the biggest hit. I actually only see Nissan going upwards after all of this is sorted out.

      • ThatGuy

        DetrinKD while i agree with the fact that the cost cutting push was very high, the CVT issue sits on Nissans lap alone, Carlos on a high level said lets do CVT’s looking at competitors but Nissan went to the Jatco(Jap CVT producer) and got the CVT from them. So what what im saying, is Carlos sai get a CVT, Nissan said lets choose the worst one, Renault decided to develop their own EDC system in all their cars so that was NIssan Not Carlos.

        Carlos saved them and i have to agree with Six Tymes that without Renault Nissan will become a Mitsubishi. Their offering, with the exception of the Qashqai, Micra and X-trail is very sad indeed.

        I dont think they have what it takes to do a Mazda or even a Subaru.

  • Alduin

    Bail out Nissan bail out NOW while you have the chance.

  • charlotteharry57

    After reading this morning about the overnight developments (early this morning in France), it is clear to me that Nissan, even if it has to sell its soul to come up with the $, should “run, run, run”. Get away from Renault and FCA before it’s too late. And, if you can, take Mitsubishi with you. This merger might take YEARS to be resolved. I’m expecting hurdles unseen along the way. If you thought that current and upcoming Fiat/Alfa Jeeps were stomach-turning, how about Renault Jeeps? Well, Chrysler has been troubled so much in the past, guess it’s time to bid adieu.

  • DetrinKD

    I hope they flee as well. Though there are definitely some struggle points, Nissan is healthy enough to fend on its own and raise Mitsubishi out of the trenches. Essentially they can position Nissan slightly more upmarket and allow Mitsubishi to take over the value seeking customers and build market share there. And just go full throttle with Infiniti and stop half stepping. Out Tesla, Tesla with the electric transition.

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