FRANCE: Renault and Nissan 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.
All five sources within the alliance, which also includes Mitsubishi Motors Corp , declined to be named because they are not authorised to speak with media.Nissan and Renault are each planning substantial restructuring and cost cuts that could affect tens of thousands of jobs, with the Japanese company to announce its measures on May 28 and its French partner likely to follow the next day.
The alliance has steadily ramped up output over the years, delivering over 10 million vehicles for the first time in 2017, the first full year after Mitsubishi joined the partnership. After his arrest in 2018 in Tokyo on charges of financial misconduct, former alliance head Ghosn said his detention was part of a plot by Nissan executives to bring him down and block any merger.
The plan is for one company to lead the development of a type of vehicle or technology with the other following, taking a page out of the play-book Gupta used to revive Renault's commercial vehicle business, as well as reinvigorate Nissan's.
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