Nissan Warming to FCA-Renault Merger, But Investors So Far Chill

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Nissan is warming to the FCA merger proposal to Renault

One of Reuters auto writers this morning cited and unnamed source reporting that the Japanese automaker is on board providing they can protect some proprietary technology connected to electric-vehicle technology. One of the other provisions cited by Reuters is the idea that Nissan would want to up its stake in Renault from 15% to have more say in the alliance going forward.

While the FCA deal theoretically gives Renault leverage in cutting a new deal with Nissan, the Japanese automaker must realize that here are few options for it in terms of cutting a different alliance. Moreover, as Renault owns 44% of Nissan, the French company has a lot to say about who Nissan aligns with.

Nissan is not the biggest hurdle to clear to make the FCA renault deal happen. It's the French government. There are obvious synergies and savings to be had by melding Fiat and Renault small and mid-sized car platforms, engines, architectures, purchasing, back office functions, etc. But the French government, which owns a stake in Renault, is all about protecting jobs, not losing them to Italy. FCA is in process of making job protection guarantees to the French.

 

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