Renault Could Cut Its Nissan Stake To Revive FCA Merger Talks

Renault could reduce its stake in Nissan in a bid to restart merger negotiations with Fiat Chrysler Automobiles, The Wall Street Journal reports.

Citing internal email as well as people with knowledge of the matter, the WSJ claims that Renault could cut its 43.4 per cent holding in Nissan as a way to rebalance their global alliance. While neither Nissan nor Renault have commented on the reports, it is understood that if Renault were to reduce its stake in Nissan, it would need the approval of France which owns a 15 per cent stake in the company.

The relationship between Nissan and Renault has long been shrouded in controversy because, while Nissan is the larger of the two carmakers, it only holds a 15 per cent non-voting stake in Renault. Nissan’s belief that a merger between Renault and FCA could weaken its influence in the alliance prompted it to withhold support for the deal. Before the French government could convince Nissan to get on side, FCA pulled the proposed merger.

Also Read: Renault And FCA Are Both Open To Restart Merger Talks

It is alleged that discussions to change the structure of the Renault-Nissan Alliance commenced shortly after the deal collapsed. Talks have been limited to a small number of executives, board members, and lawyers for the companies.

Those with knowledge of the talks claim that the negotiations are still in their early stages but an email dated July 12 suggests that an agreement between Renault and Nissan could result in an initial memorandum of understanding between the pair as early as September.

Speaking on an earnings call during the week, FCA chief executive Mike Manley expressed his belief that an FCA and Renault merger can help both companies, dubbing it “a great opportunity for us. And we believe it’s a very good opportunity for Renault.”

  • William rowe

    Just dump Nissan all together. What does Nissan really have to offer of Value anyways?

    • charlotteharry57

      I agree of dumping Nissan (and Mitsubishi). But, this couldn’t come at a worse time for Nissan, given Carlos’ misdeeds. Normally, Nissan has a LOT more going for it than dreadful Renault. At least that’s how us folks in the States view this.

    • Smith

      More like Nissan should get out of this relationship as soon as possible. FCA are the worst and Nissan would do a lot better with another quality car maker as a partner, rather than the worst, lowest quality players in the industry, Fiat and Chrysler … Please!

      • Сафиуллинь-Мухамед Рамазанов

        Totally agree

  • Bige Lee

    If this does go through. Nissan will end up with Mitsubishi and FCA with Renault. What could go wrong.

    • I’d rather bet on the Nissan / Mitsubishi side to be fair. With crossovers being the trend, I’d bet more success coming from the two companies that are making the most out of it at the moment.

  • charlotteharry57

    FCA could do a LOT better than merging with Renault. Maker of unreliable vehicles. Already, Fiat, another maker of unreliable vehicles, has screwed up Chrysler severly. If Chrysler was on its own, it would have merger partners knocking down the door. Few want to be burdened by Fiat and Alfa. Renault has nothing to bring to the table other than cash. That’s fine up front but not for the long term.

    • Smith

      Wooh, hold on there. I think you mean Renault could do a lot lot better than merger with FCA, the worst car maker n the world, bar none.

    • illogicalPotato

      Pop the brakes there. In terms of build quality, FCA is probably the worst brand in terms of quality, just look at the overall quality of the cars. Terrible panel gaps, failing electronics, poor quality materials; I’m not sure what kind of biased koolaid you’re drinking but you definitely don’t know what you’re talking about. The only people who screwed up Chrysler is themselves with garbage quality and poor design. Their last good car was the first gen 300, which they’ve fumbled immensely since then. If anything with Fiat and Alfa on the rise, it would be smart of FCA to pull the plug on Chrysler.

  • Г. Константин

    I think a lot of people here talks from US perspective

    • dn12005

      Yep…could not agree more.

  • Stephen G

    Michelin…instead of attitude…make an argument why charlotteharry57 is wrong!

  • Smith

    Fiat and Chrysler is bad enough, but then add Renault into the mix and all the worst cars will be made by one company. How cool will that be. Nissan, get out and run for the hills, so you don’t get taken down with the rest.

  • Smith

    Yes, I know the markets outside the USA and FCA are the worst car and truck producers in the world, USA and Europe. Totally the worst.

  • Mr. EP9

    Someone is desperate to get this merger.

  • Wayne Alan Carr Heyes

    And we’re is Mitsubishi in this? That is already part of the alliance it isn’t just R&N now

    • Сафиуллинь-Мухамед Рамазанов

      Mitsubishi is part from Nissan now

  • MarkoS

    A Nissan / FCA tie-up would be a better Idea. I can’t imagine FCA being interested without it.

  • Сафиуллинь-Мухамед Рамазанов

    wow, do you really believe in your own words !!!

  • Peter Smith

    I have never owned a Nissan, but here in the UK they are considered to be very good. Certainly more reliable than FCA products, particularly Fiat. I don’t know much about Jeep or Chrysler, but Fiat’s here have a long history of poor quality.

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