Nissan and Renault are focused on sorting out the rest of the rough patches between their current alliance so that they can restart the talks about merging together entirely within the next year. Both companies have also been talking with another automaker to create an even bigger powerhouse in the automotive industry: Fiat Chrysler Automobiles.
In a report from The Financial Times, the Renault-Nissan merger plans to make bids for FCA (Fiat Chrysler Automobiles), which has been seeking cooperation among the automakers for years. The late CEO for FCA, Sergio Marchionne, candidly talked about his desire for the automaker to merge with one or more others to experience more profitability. Carlos Ghosn, former Renault CEO and current chairman of the Nissan-Renault-Mitsubishi Alliance spoke with FCA about a potential merger three years ago. At the time, the French government shut down all chances for a merger.
Other Merger Options
When the news came about of a potential merger in the future with Nissan and Renault, Fiat Chrysler Automobiles reportedly rejected another merger offer from PSA Group, a French automaker. Another report claimed that John Elkann, Chairman and driving force from inside FCA is seeking out potential partners for a merger. The current CEO of Fiat Chrysler Automobiles, Mike Manley, is also taking a similar tone as Sergio Marchionne and claims to be open about partnership conversations, joint ventures, and more.
If FCA were to merge with Renault-Nissan, the conglomerate automaker could become large enough to challenge many global automakers, including Volkswagen Group and Toyota Motor Corporation.
Of course, the future of the alliance between Nissan and Renault focuses on the alliance board created by Jean-Dominique Senard, Renault Chairman. This new board has been helping to reset relationships between the automakers after Ghosn’s departure and arrest in 2018.
Renault-Nissan talks of a partnership have caught the eye of Fiat Chrysler Automobiles, which hopes to merge all three together in the near future.