Nissan and Renault shelve merger plans to repair their alliance: sources

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Renault and Nissan have shelved plans to push towards full merger and will instead fix their troubled alliance

) have shelved plans to push towards the full merger former leader Carlos Ghosn craved and will instead fix their troubled alliance to try to recover from the coronavirus pandemic, five senior sources told Reuters.

“After the rain, the earth hardens,” said one senior Nissan source, citing a popular Japanese proverb that means relationships become stronger after a period of strife. The sources said the companies were unlikely to disclose many details at the events this week of how the new approach will be used to share costs as the companies were still working on specific projects.

Nissan executives believe their engineers are substantially more productive than their Renault colleagues and the way the French carmaker proposed to combine technology and product development did not properly account for Nissan’s intellectual property, three of the sources said. Earlier this year, relations looked strained to a point where the 21-year alliance was at risk of collapse.

 

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