Renault and Nissan rule out merger as they unveil alliance’s new survival plan

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Renault and Nissan rule out merger as they unveil alliance’s new survival plan GlobeBusiness

The logos of car manufacturers Renault and Nissan are seen in front of dealerships in Reims, France, on July 9, 2019.Renault, Nissan Motor Co and Mitsubishi Motors Corp ruled out a merger on Wednesday and instead said they would co-operate more closely on vehicle development to slash costs and salvage their troubled alliance.

Renault and Nissan, which both posted losses last year, are hoping that reinvigorating their alliance will help keep a lid on costs, but also allow them to move ahead of rivals in areas such as electric vehicles. Renault owns 43 per cent of Nissan while Nissan has 15 per cent of the French car maker, but no voting rights. Nissan executives have strongly resisted Ghosn’s drive for a full-blown merger.The companies gave few details of how the revamp would deliver in the short term, as the car industry grapples with the fallout from the coronavirus pandemic and pressure to develop less polluting vehicles.

Nissan will now take the lead in Japan, China and North America, Renault will be the reference for Europe, Russia, South America and North Africa while Mitsubishi will lead in Southeast Asia and Oceania, the companies said.

 

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