Published 7:57 PM EDT Jun 5, 2019
"The Board of Directors was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council," according to a Renault statement. Wednesday marked the second day of meetings for the Renault board, which released its statement early Thursday morning Paris time.
Concerns about maintaining a voice in the new entity from the French government, which owns a 15% stake in Renault, were said to be at issue, but Reuters reported Tuesday that a resolution had been reached. Tensions with Nissan had also flared, with that company's CEO, Hiroto Saikawa, saying Monday that a full FCA-Renault merger"would require a fundamental review" of the Nissan-Renault relationship.
"The problem is that a merger makes little sense without job cuts. Without cuts, the resulting company would be an inefficient, bloated hippopotamus of a company," Erik Gordon, a law professor at the University of Michigan's Ross School of Business, told the Free Press last week."As with any merger of companies, the UAW is first and foremost concerned how this will impact our members.
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