Renault-Nissan Merger Talks Reportedly Underway


With the recent acquisition of Mitsubishi, plus a merger between Renault and Nissan, this already formidable electric car conglomerate could be a major force in the push towards an electric future.

Carlos Ghosn is believed to be in charge of running the talks.

Related – Ghosn – Renault-Nissan-Mitsubishi Alliance Are Only Automaker Profiting On EVs

PSA Group’s acquisition of Opel and Vauxhall might turn out not to be the only major deal in the automotive industry this decade. According to a new report from Bloomberg, quoting “people with knowledge of the matter,” Nissan and Renault are currently discussing a merger to form a new automaker.

2018 Nissan LEAF

We can’t say we are surprised to hear that, as the two companies already have a lot in common. The French manufacturer owns 43 percent of Nissan, while in return the Japanese firm has a 15-percent stake in Renault. Both companies are managed by Carlos Ghosn.

Namely Ghosn is considered to be in charge of running the negotiations between the two brands, a transaction in which shareholders from both Renault and Nissan will receive stock in the newly-formed company. It is believed the new automaker may maintain two headquarters, one in Japan and one in France, but there’s also a possibility for a single HQ in London or somewhere in the Netherlands.

But a merger could prove to be very difficult, as both the French and Japanese governments would have to approve it. Also, the French government still owns 15 percent of Renault and may be unhappy to reduce its impact. According to our source, talks between the two companies have been ongoing for several months now and there’s still no final decision taken.

Back in February this year, Ghosn announced Renault and Nissan would work on a plan to “make the alliance irreversible.” The two companies aim to double their synergies from 2016 to about $12.2 billion by the end of the decade.

The combined sales of the Renault-Nissan-Mitsubishi alliance last year rose by 6.5 percent to a total of 10,608,366 units. Simply put, every ninth brand new car sold worldwide in 2017 has been produced by the conglomerate.

Source: Reuters

Categories: Mitsubishi, Nissan, Renault

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6 Comments on "Renault-Nissan Merger Talks Reportedly Underway"

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From article: “With the recent acquisition of Mitsubishi, plus a merger between Renault and Nissan, this already formidable electric car conglomerate could be a major force in the push towards an electric future.”

Would be a good logical merger for Nissan & Renault if France allows it but not so great for France. Renault needs the merger to survive and France can’t at this time afford to loose such a high-profile French multi-national company.

Best thing Nissan can do today to further push towards an electric future is to engineer into their battery pack a better thermal management system… that probably means starting from a clean sheet on their battery module design which Nissan seems to-date reluctant to do.

With the recent and latest Nissan #chargegate issues, with the new 2018 Nissan Leaf (1.75), it will be interesting to see if the newly unfolding Nissan / Renault alliance can morph into a “newly-formed company”.

If the French and Japanese can solve this complex partnership integration, then I would suspect the 2018 Leaf non-TMS 40kWh battery, will be among the last of the Mohicans, for this antiquated hamstrung technology, being drug along for almost the last decade. The VW EV production ramp up in the next 18 months, will make the Nissan/Renault integration consider dumping poor EV battery management solutions.

I doubt a full-on merger is necessary or smart. As any number of studies show, most mergers fail, and badly. They make sense when company culture is similar and the product range is completely complementary, but neither would be the case here.
I have a friend who works at Daimler, and she was their during the “DaimlerChrysler” years — a big horror show.

Nothing preventing the two companies from cooperating more closely without an outright merger.

A French company moving its headquarters from Paris to London, especially after Brexit. My sides.

A decoy!

Alliance 2017 sales
Renault 3,761,634
Nissan 5,816,278
Mitsubishi 1,030,454
Total 10,608,366

35% of sales come from the Renault group. After a full merger it wouldn’t be very French.