RENAULT’S long-time Alliance partner Nissan has been left sidelined by a potential tie-up between the French firm and Fiat-Chrysler, just as the beleaguered Japanese carmaker battles to recover from the arrest of former boss Carlos Ghosn.

“It’s an ill thought-out and badly conceived plan,” fumed one source close to Nissan, who did not wish to be identified, told AFP in response to the Fiat-Chrysler “50:50” merger proposal that would potentially create the world’s third-largest carmaker.

It is a bitter pill to swallow for Nissan, which appeared to be completely left in the dark about the project and is already battling falling sales amid reputational damage from the downfall of Ghosn, who is fighting financial misconduct charges.

Behind the scenes at the Yokohama-based firm, people believe it could further damage relations with Renault, which is already pushing for a formal merger between the pair against Nissan’s wishes.

Putting a brave face on it, Nissan CEO, Hiroto Saikawa, told reporters he was “open to constructive discussions to strengthen the alliance”.

Nissan and Renault, with headquarters 10,000km apart and with very different histories and cultures, have always been seen as unlikely bedfellows and Ghosn was instrumental in keeping the alliance together.

With his downfall, after a Nissan-led investigation, the glue bonding the pair since 1999 has been removed and relations have quickly gone downhill.

Fiat’s offer, which Renault is studying “with interest”, shows its Japanese partner that “it is no longer as important in its eyes,” relegating it to third place, according to Christopher Richter, analyst at Tokyo-based CLSA.

But, according to a well-informed source, “the door is open” for Nissan to join the tie-up, despite a recent downturn in sales figures.

Nissan is still an important block in their puzzle, given it has good coverage of China, where neither Renault nor FCA are strong,” an auto sector analyst who wants to remain anonymous said.

Nissan also brings to the party its Japanese partner Mitsubishi Motors, which has a strong presence in south-east Asia.

If all firms were brought together, they would be producing nearly 16 million cars a year, well ahead of Toyota and Volkswagen which both sell around 10 million.

In any case, after 20 years, Nissan is too closely integrated with Renault to consider a divorce, no matter how low relations sink.

“There are too many joint projects,” said one source close to the Japanese firm.

“The alliance in its current form cannot be defeated, it is already irreversible.”

Investors, however, did not seem to cheer the news.

While Renault and Fiat shares went through the roof, climbing 13 and 18 percent respectively, Nissan stock enjoyed a muted rise of just over one percent.


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Bill Buys, probably Australia’s longest-serving motoring writer, has been at his craft for more than five decades. Athough motoring has always been in his DNA, he was also night crime reporter, foreign page editor and later chief reporter of the famed Rand Daily Mail. He’s twice been shot at, attacked by a rhinoceros and had several chilling experiences in aircraft. His experience includes stints in traffic law enforcement, motor racing and rallying and writing for a variety of local and international publications. He has covered countless events, ranging from world motor shows and Formula 1 Grands Prix to Targa tarmac and round-the-houses meetings. A motoring tragic, he has owned more than 90 cars. Somewhat of a nostalgic, he has a special interest in classic cars. He is the father of Targa star Robert Buys, who often adds his expertise to Bill’s reviews.
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