Nissan in turn owns 15 per cent of its French partner Renault but the imbalance in the relationship has led to serious friction, highlighted by the arrest of former Renault and Nissan chief Carlos Ghosn in Tokyo.
However, The New York Times took a more cautious line, saying the discussions were in early stages, the specifics unclear and"could still collapse".The Financial Times, quoting multiple people informed on the talks, said:"The agreement may ultimately lead the carmaker to join the Renault-Nissan-Mitsubishi Alliance in the future," if Nissan can be won over.
However, the tie-up with FCA could make Renault much more powerful, potentially further upsetting the balance in the Renault-Nissan-Mitsubishi combination where Ghosn was pushing for much more say before his downfall. Fiat Chrysler meanwhile sold 4.8 million autos but has been under pressure in Europe, stoking speculation it was looking for a partner as the industry is forced to consolidate in the face of declining demand and a costly switch into electric cars.
Renault meanwhile has pushed ahead in electric cars but is relatively weak in North America so the two companies would be a good fit.