Renault has to do its homework
At Renault, one hasn’t forgotten being courted by Fiat Chrysler Automobiles (FCA). But to eventually agree, Renault has to solve its problems within the Alliance with Nissan first.
This has been confirmed by the American newspaper, The Wall Street Journal, which underlines that Nissan wishes Renault to reduce its 43% stake in Nissan and find a new equilibrium in these matters.
New negotiations within the Alliance
The talks between Renault and Nissan are still in a preliminary stadium but could end in an agreement at the end of September, estimates the Wall Street Journal.
That is if the French state also gives its approval, as it has 15% of the Renault shares. This is not sure yet. When he was in Tokyo last June, president Macron refused to foresee a change in the share distribution. Also, Mitsubishi, partly owned by Nissan, has its say in the talks.
At the moment, both companies don’t want to comment on the situation. In the spring of this year, Nissan still refused a tighter relationship; at the beginning of July, discussions have restarted.
Renault is represented by president Jean-Dominique Senard, member of the board Pierre Fleuriot, and Armand Grumberg, a lawyer from Skadden Arps. For Nissan, there is CEO Hiroto Saikawa, board member Masakazu Toyoda, and lawyer Hari Nada.
What about FCA?
When an agreement can be reached between the Alliance partners, Renault could reinitiate its talks with Fiat Chrysler Automobiles. A merger between Renault and FCA would make it the third biggest car manufacturer in the world. The Alliance would then become number one worldwide, by far.
Of course, the people at Nissan remain relatively nervous about this deal, putting them in an inferior position within the Alliance. That’s why, at Renault, they don’t want to make the same mistake again to keep Nissan out of the negotiations.
When Renault published its yearly results at the end of July, CEO Thierry Bolloré confirmed that a possible fusion between Renault and FCA wasn’t in the actual plans anymore. “We don’t talk with FCA,” he insisted.
The FCA CEO, Mike Manley, has one more time stated last week that a possible marriage between Renault and FCA would have been “a big opportunity with significant synergies.” He insisted on the fact that FCA can survive on its own, but that “the group remains open to opportunities”.