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Japan: Renault wants to merge with Nissan, then go after Fiat

 |  March 27, 2019

The Financial Times reported that Renault wants to begin merger talks with Nissan in the next 12 months. Assuming a merger gets completed, the plan is for the combined company to then pursue another merger, with Fiat Chrysler a prime target.

Renault, Nissan, and Mitsubishi have been busy since cutting ties with ex-alliance boss Carlos Ghosn. They formed a new alliance board with Renault chairman Jean-Dominique Senard at the helm, Renault has shrunk the size of its board while Nissan added more outside directors, and the two agreed to a new governance structure to ease operational decision making. All three automakers have walked away from Ghosn-era goals to sell 14 million cars and find €10 billion (US$11.2 billion) in savings by 2022. New strategic plans for all three car companies are in the works.

The combined company would then pursue a further acquisition that would bulk up the business for a fight for global dominance with the likes of Volkswagen and Toyota. Two people familiar with the matter said Mr Ghosn held talks about merging Renault with Fiat Chrysler two to three years ago, but the proposal was scuppered by opposition from the French government.

Full Content: Financial Times

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