Renault-FCA Merger Hinges On Nissan And French Gov Backing

It seems that reviving merger talks between automotive giants Renault and FCA will depend on overcoming at least two major hurdles: repairing Renault’s relationship with Nissan and the willingness of the French state to reduce its stake in its home automaker.

Autonews Europe reports that the French government agreeing to give up its sway over Renault would be necessary in order for merger talks to be revived.

France could for example agree to reduce its 15% stake after obtaining commitments by FCA on French jobs and plants, according to sources who wished to remain anonymous.

Despite failed talks, Renault, FCA and France have left the door open for a possible deal as all entities brace for the costly changes that are about to sweep through the industry, such as the development of electric and autonomous technologies and infrastructures.

“The project remains, in my head, absolutely remarkable and exceptional,” Renault chairman Jean-Dominique Senard said.

Meanwhile, FCA is still “firmly convinced of the compelling transformational rationale” of its proposal, whereas French finance minister Bruno Le Maire said a merger is an “interesting opportunity” and that talks could resume once Renault’s alliance with Nissan is strengthened.

Also read: French Government Denies Blame For Collapsed Renault-FCA Merger Proposal

Last week, FCA CEO Mike Manley reportedly met with Renault executives in Paris in order to kick start new talks, according to Il Sole 24 Ore, which cites people familiar with the matter.

Perhaps the most promising development was the French finance minister confirming that the state would consider cutting its Renault holding in order to help strengthen the alliance with Nissan. On its part, the Japanese automaker is also willing to accept its partner’s demands for more representation on its board committees.

Even so, strengthening the alliance is likely to take time, especially after everything that happened with the arrest of Carlos Ghosn back in November and the ensuing saga, which is far from over.

  • Mr. EP9

    Nissan’s using this as leverage over Renault.

  • Tan Lee

    This has a Porsche takeover of VW to turn into VW taken over Porsche vibe to it. Nissan can’t be trusted.

  • helloWorld

    let mergio rest already. instead of wasting money on the merger that mergio wanted, they should be plowing some of that money on a new platform for their future crossovers. then stick e-torque in them

2020 Mercedes EQB EV Shows More Of Its GLB-Sourced Body

Merc’s compact electric SUV will reportedly offer a range of nearly 250 miles with the largest of the three available battery packs.

2020 Renault Captur PHEV Should Sport 158 HP Powertrain, 28-Mile Range

The same powertrain will most likely also be adopted by the facelifted Megane and second-gen Nissan Juke.

New Center Side Airbag Coming Soon To Hyundai, Kia And Genesis Models

Installed inside the driver’s seat, Hyundai’s side center airbag is designed to prevent front passengers from colliding with each other.

Scuderia Cameron Glickenhaus Reveals Its WEC Hypercar Series Racer

SCG’s brand new endurance race car sports a massive rear wing and will be powered by a hybridized, 3.0-liter twin-turbo V6.

DS 9 Fastback Uncovered In China As Rebadged, Luxed-Up Peugeot 508 L

The DS 9 is very closely related to its PSA stablemate, and will be available with a 200 HP, 1.6 turbo four as well as a plug-in powertrain.

2020 Honda CR-V Gains New U.S.-Built Hybrid Version, Drops Base 2.4L Engine

The new addition to the CR-V’s lineup uses a hybrid powertrain that consists of a 2.0-liter petrol four and two electric motors.

Car-Clueless Thieves Crash ’67 Ford Mustang Into Store To Steal Three Gaming Consoles

And the award for the dumbest thieves of the year goes to the ones who used a ’67 ‘Stang to steal… three PlayStations!.

Honda Skyroom Concept May Be Tiny, But It’s Loaded With Tech

The futuristic study is all-electric and fully autonomous and features a circular cabin dominated by… a large couch!.

Grand Cherokee Summit Launches In Australia As Most Luxurious Version Of Jeep’s SUV

The most plush 2019 Grand Cherokee available will set you back AUD $84,450, plus on-road costs, and comes with an extensive list of equipment .

Forget About The Nürburgring – The 2020 Porsche Taycan Looks Best In Its Natural Habitat

Porsche just dropped a big photo gallery showing the 2020 Taycan during its international media drive event in Norway.