Renault will not take over Nissan, Mitsubishi confirms Carlos Ghosn

Renault-Nissan-Mitsubishi have a unique partnership designed in which the alliance leverage their combined scale to save on costs including R&D, parts procurement and production to better compete with rivals Volkswagen and Toyota.

By: | Published: June 25, 2018 10:27 AM
File Photo: Carlos Ghosn

Putting the rumour of Renault acquiring Japanese brands like Nissan and Mitsubishi to rest, Chairman Carlos Ghosn confirmed that this is not an option and the Renault-Nissan-Mitsubishi alliance will continue while retaining their autonomy. He said that anybody who will ask Nissan and Mitsubishi to become subsidiaries of Renault has 'zero' chance of getting a result. The alliance between Renault-Nissan-Mitsubishi was the world's top-selling automaker in the world in 2017 and is further looking to strengthen its position before Carlos Ghosn (64) calls his retirement in coming years after leading the alliance for over 2 decades.

Earlier there were media reports suggested that the car makers were discussing a deeper tie-up in the alliance which could have to lead the French government, a major shareholder in Renault giving up its stake and then Renaut taking over control of Nissan.

The three automakers have a unique partnership designed to leverage their combined scale to save on costs including R&D, parts procurement and production to better compete with rivals Volkswagen and Toyota.

The current shareholding structure stands at Renault owning 43.4 percent of shares in Nissan, while Nissan owns 15 percent of Renault, with no voting rights in a partnership that began in 1999. Mitsubishi Motors joined the alliance in 2016 after Nissan took a 34 percent controlling stake in the smaller automaker. Nissan CEO Hiroto Saikawa has said the alliance is not discussing a “full merger”.

Ghosn said that while the focus of the alliance was to sell more cars and increase profitability by reducing unnecessary duplication of processes, he wanted each of the three automakers to maintain their independence, which differentiated the group from Toyota and Volkswagen.

“We need to prove that this is sustainable five years down the road, 10 years down the road, 15 years down the road,” he said.

-With Inputs from Reuters

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