Renault is said to be looking into restarting merger talks with Nissan sometime in the next 12 months as part of a move towards the creation of an auto conglomerate to rival Toyota and Volkswagen. According to the Financial Times, the merger would pave a way for the companies to make a bid for Fiat Chrysler Automobiles (FCA).
It’s not the first time Renault has made an attempt at securing FCA. Discussions of a possible merger took place a few years ago, but former Renault-Nissan-Mitsubishi alliance chairman Carlos Ghosn’s proposal then was stopped by the French government.
The report added that FCA is keen on seeking a partnership or merger, and that FCA chairman John Elkann has already met with other rivals, including the PSA Group of France. Renault, Nissan and FCA all declined to comment on the report.
The Renault and Nissan alliance never made it as far as a complete merger, although Ghosn had planned to cement the two companies prior to his resignation from the alliance following the financial scandal that emerged late last year. Nissan had resisted such a move then, and with trust still a residing issue, it remains to be seen if a deal can be struck.
The idea of adding FCA into an equation would be a tall order for any carmaker or alliance, and in this case the matter is compounded further by the fact that Renault’s most powerful shareholder is the French government, which would have a say in the matter, given that adding another brand would potentally dilute its stake.
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Fun fact: PSA group was in financial troubles in the late 2000’s and early 2010’s. The French government financed the bailout of the group from bankruptcy.
Another fun fact: Fiat obtained Chrysler with subsidies from the US government. US taxpayers basically gave Fiat almost US$80 billion to takeover Chrysler.
Whoever buys / merges with Fiat Chrysler Auto group will regret it. Fiat, Alfa Romeo, Maserati, Chrysler and Jeep… none of them have a good reputation for quality, reliable products. Nobody wants a car with 101 ticking time-bombs for your wallet. Renault is not known for exceptional quality either. Nissan quality control has gotten worse since their partnership with Renault. And most of Mitsubishi’s cars are ancient in comparison to Toyota and Honda.
This whole plan is doomed to fail, inevitably.
So is Nissan going to backstab the new CEO and throw him into jail just like the last one to prevent this merger? If They were really capable, they should just buy back their shares. No need all this wayang show.