AUTONEWS

Renault-Nissan: The End of Marriage

Renault and Nissan have been engaged in talks aimed at reducing the percentage that the French hold in the Japanese manufacturer, according to the Wall Street Journal (WSJ). The aim is to allow the Gallic brand to resume negotiations with Fiat Chrysler Automobiles (FCA), with a view to the 50% -50% merger that was on the table in the first half of the year. At the time, the merger did not move forward because it did not interest Nissan, which obviously felt it would be in an even more fragile situation when part of a much larger group, but also because the French state prevented Renault from taking positions in an attempt - which many see. as vain - to save the Renault-Nissan Alliance.
Regarding the strategy for the future of the French manufacturer, Max Warburton, Bernstein analyst, published in Automotive News Europe a curious open letter (which you can see here) to Renault chairman Jean-Dominique Senard advising him to abandon the call. to the Japanese and selling their 43.4% stake in Nissan for, he estimates, € 11 billion.
Warburton states that “after 20 years of efforts with Nissan” since the day Renault saved the Japanese from bankruptcy, they (for cultural reasons) have always worked in the shadows to undermine the power the French rightfully held in Japanese brand. This led Warburton to conclude that Renault should do as it did Daimler with Chrysler and Mitsubishi before, and Ford with Jaguar Land Rover and Volvo: simply selling and ending the partnership that he says is doomed. not working.
The decision of the French to sell part or all of its share in Nissan seems to be possible as long as the French state agrees - which should happen in the light of the poor state of relations between Nissan and Renault - and if the Japanese can raise a sum of this size. All the more difficult as the Japanese brand is going through a serious commercial crisis, with a sharp drop in sales and profits - in the last fiscal year Nissan made fewer profits than Renault, although it sells more - which will make it difficult to gather investors. .
The last time Nissan, like Mitsubishi, was delivered to itself, the story didn't end well. They just didn't fail because someone (better managed Renault and Daimler) put their hand underneath. And only with extra doses of goodwill can one think that, after all that has been said and done - starting with the arrest of Ghosn - there is any possibility of wiping out the distrust between Renault and Nissan. Above all, after Senard has stated that he does not intend to pinch Renault's assets by "offering" a larger percentage of his company to the Japanese.
Renault and Nissan declined to comment or confirm the talks, but it appears that contacts to change the structure of the Renault-Nissan Alliance began in June, shortly after negotiations for the FCA merger collapsed. Those who are linked to the process, according to the WSJ, expect a compromise to be reached in September, citing emails exchanged between both parties.