The planned merger of the two car giants Renault-Nissan-Mitsubishi and Fiat Chrysler Automobiles was never completed earlier this year. This emerges from a report in the Wall Street Journal (19459005), in which sources claim to be in talks to get the romance back on track. (19659002) The FCA cracked its bid in June after the French government, which owns 15 per cent of Renault's pledge, was involved in discussions, pointing out the need to have alliance partner Nissan fully on board. The Japanese automaker, involved in a scandal and a serious financial slump, stayed away from these earlier conversations and offered courteous but not enthusiastic public support when reports of concerns over its autonomy and dwindling influence emerged from such a marriage.
On the right path Renault would have to relax its relations with Nissan.
According to the WSJ report, Nissan wants to balance the ambiguous relationship between him and his alliance partner. Sources well aware of the talks, which seem to have been going on since June, say the Japanese automaker wants Renault to lower its stake of 43.4 percent in the company.
Nissan is involved with 15 percent of Renault, but does not have the voting rights to Renault. However, before Renault can part with Nissan, the French government would have to push a thumbs up. In earlier discussions with the FCA, France sought assurances regarding locations and employment figures.
With the withdrawal of its proposal, the FCA claimed that it had become "clear that the political conditions in France are currently not met for such a combination to succeed. "
The talks between the two automakers are expected to take until the end of the year, with the possibility of a memorandum of understanding in connection with an alliance restructuring signed next month," sources said. As you would expect, no one at Nissan or Renault has anything to say to the media.
According to the FCA proposal, the $ 50 billion 50/50 merger would mark the creation of the world's third-largest automaker. This could lead to annual savings of $ 5.6 billion, according to the FCA , Italian-American company chairman John Elkann would repeat his role with Renault CEO Jean-Dominique Senard, who will likely serve as CEO. The new unit, supervised by a 11-member Board of Directors, would be structured through a Dutch holding company.
[Image: Fiat Chrysler Automobiles]