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Renault-Nissan Merger Might Not Happen, Say Reports

Renault absorbing Nissan and Mitsubishi is not an option as the carmakers look to strengthen their partnership while retaining their autonomy.

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We had earlier reported that the the Renault-Nissan merger might not happen till 2020. However, according to a report in Reuters, Renault absorbing Nissan and Mitsubishi is not an option as the carmakers look to strengthen their partnership while retaining their autonomy. The statement comes directly from alliance chairman Carlos Ghosn. At a recent shareholders meeting with Mitsubishi, Ghosn said, "Anybody who will ask Nissan and Mitsubishi to become wholly owned subsidiaries of Renault has zero chance of getting a result."

In March this year, Ghosn revealed the company's plan to share technology, resources, man-power and direct these towards research on new-energy vehicles, autonomous driving and car-sharing services. Ghosn had also announced the alliances plan to double their synergies to 10 billion Euros by 2022.

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The three automakers have a unique partnership designed to leverage their combined scale to save on costs including R&D, parts procurement and production to better compete with rivals Volkswagen AG and Toyota Motor Corp.

Ghosn added, that while the focus of the alliance was to sell more cars and increase profitability by reducing unnecessary duplication of processes, he wanted each of the three automakers to maintain their independence, which differentiated the group from Toyota and Volkswagen.

"We need to work together ... to find a system by which what we have today, which is working very well, can continue in the future no matter who is leading the alliance," Ghosn said.

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The announcement comes as a blow to the alliance, as in a Figaro interview, Ghosn was upbeat about the prospect of securing a new deal for the alliance despite its extreme political sensitivity in France and Japan, saying a plan would need to be announced "well before" the end of his four-year term at the helm of Renault in 2022.

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