The fissures in the Renault and Nissan alliance brought about by the failed merger with Fiat Chrysler Automobiles (FCA) may take a long while to heal, and it doesn’t look like a quick fix is in sight. If anything, undercurrents continue to plague the union, with the Japanese automaker saying that inequality between the two companies could unravel the partnership.
Nissan CEO Hiroko Saikawa said that the company was looking to preserve the spirit of equality in the alliance, despite it not being the case at shareholding level. Speaking at the company’s AGM in Yokohama earlier this week, he said he would continue to ensure Nissan was not left short, as Reuters reports.
“We want a win-win relationship with Renault. The alliance has been successful until now because we have respected each others’ independence. If necessary, we will put our capital structure on the table. If the relationship becomes a win-lose one, the relationship will break up very quickly,” he said.
Despite both companies having publicly resolved a disagreement between Saikawa and Renault chairman Jean-Dominique Senard regarding appointments to Nissan’s newly-created oversight committees, the healing process will have to delve deeper beyond leaving it merely to time.
Having a 43.4% share in the Japanese automaker, Renault had demanded additional representation for its directors on Nissan committees that will oversee company auditing and personnel nominations. Initially, Nissan was not set to meet those demands, but late last week changed its view and granted seats on its nominations and auditing committees to Senard and Renault CEO Thierry Bollore, respectively.
Saikawa said that discussions on the future of the alliance will eventually have to come about. “It is critical to create opportunities in the future with Renault to discuss options for the alliance. I want to discuss these with Senard,” he told shareholders.
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Saikawa, the man that orchestrated the baskstabbin- ahem, downfall of Carlos Ghosn. He made it sounds like the Japanese were suffering in the alliance with Renault. Has he forgotten how Nissan survived its near-bankruptcy? Renault has pumped billions into Nissan to turn the company around.
Nissan is much better on its own. Past is past, look at future. Mazda and Volvo prospered after Ford separation, Nissan the next unicorn.
Now nissan is giving back billions to renault. Based on year to year sale and profit, nissan is the highest contributor within the alliance, earn more than what renault earn.
NHK reported Nissan profits are in decline for the 4th year in a row. If Nissan was so hot, FCA would want to merge with them and not Renault.
Now nissan is giving back billions to renault. If you look back the total sell of the alliance without involvement from mitsubishi, nissan sell twice more vehicle than renault. With this renault still earn money from nissan vehicle sell. If being independent within the alliance bring benefit to renault, just let it be.
At the end of the days its just doing business and trying to survive.
Its never about pride, decision power, etc…its business.
Renault buy them coz of business and they agree as they needed to survive. Now that they can survive they want to do it on their own. Just like how a mechanic initially worked at a workshop, once he gather enough fund and knowledge its time to open his own shop.
If Nissan wanted their independence, they know what they needed to do in the right way via buyback of their stakes, and not backstabbing their saviour.
‘the spirit of equality in the alliance, despite it not being the case at shareholding level.’
So the ‘spirit’ is, that the owners of 43.4% of Nissan’s shares should not have a say? That’s an interesting approach.
Basically, Nissan is saying “Renault, thanks for the billions to buy those shares, but you have no say in how we do anything from now on. Just watch from the ringside.” You can see now why Renault and Ghosn want greater integration within the alliance.
despite the alliance, why are renaults still so unreliable
Because Nissan cars are just as unreliable