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  • Drew Dowdell
    Drew Dowdell

    Nissan Upbeat on FCA-Renault Merger

      ...as long as the price is right....

    A Nissan executive who has declined to be identified is upbeat about the possible FCA-Renault merger according to a report by AutoBlog.  The deal, estimated at about $35 billion, would not give FCA the right to use Nissan technology via the Nissan-Renault alliance. 

    The executive said he was optimistic about possible synergies of using Nissan's green and electric vehicle know-how in other vehicles. He also raised the possibility that Nissan could increase its stake, currently 15%, in Renault or FCA-Renault.  Without increasing their stake, Nissan's share of the resulting company would be cut to 7.5%.  FCA-Renault however, would continue to hold 43.4% of Nissan. 

    Examples of some of the sharing could be Nissan's advanced engine technology currently used in Infiniti as a possible benefit for Alfa Romeo and Jeep. 

    FCA and Renault for their part are still negotiating with each other and with the French government which wants job and production guarantees. Renault is said to have a decision on the merger by end of this week.

    Source: AutoBlog

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    Assume this merger is allowed and goes through.  Then eventually, Nissan will want to fully merge with Renault FCA. 

    Two questions: will the French government divest itself of Renault? And who will cut the number of cars and car makes in order to rationalize the new firm?

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