Fiat Chrysler and Renault team up as Nissan threatens to pull out of alliance
Renault is stalling due to Nissan worries, causing Fiat Chrysler to withdraw its massive merger proposal.
Fiat Chrysler withdrew its US$35 billion merger offer with Renault, blaming "difficult political conditions" with the French government.
This merger would be one of the biggest moves in the automotive industry ever and would result in the creation of the third largest automotive group in the world.
Fiat Chrysler (FCA) withdrew a 50/50 merger deal that it said "would bring substantial benefits to all parties", stating only that "it has become clear that the political conditions in France do not currently exist for such a merger" . continue successfully."
The French side took longer to approve the deal, which Nissan's Japanese chief executive said "will require a fundamental overhaul of the existing relationship between Nissan and Renault." The French government, which owns 15% of Renault, was unwilling to act without a guarantee that the deal would not result in Nissan leaving the alliance.
Other concerns included a job-guaranteing merger in France and complications from FCA's merger with a partially state-owned enterprise.
The Nissan-Renault alliance has been in turmoil since former Nissan/Renault CEO Carlos Ghosn was arrested in Japan on charges of underreporting and misappropriating company assets.
Nissan executives allege that Ghosn abused the company's assets.
Ghosn's lawyer claims the charges against him were linked to an internal Nissan case. He was released on bail several times and re-arrested.
Nissan's Japanese executives expressed frustration that, under Ghosn's leadership, the brand was drawing too much attention to fleet sales in certain markets, driving down its value. In the past, the Japanese have resisted further integration with Renault and fear the loss of independence for the European giant.
Efforts to limit Renault's influence and control over Nissan continue. Earlier this year, it was reported that even the Japanese government is interested in maintaining Nissan's independence, preferably even reducing Renault's 43 percent stake in the storied Japanese brand.
Renault's technology partnership with Mercedes-Benz parent Daimler could also be in jeopardy as the German giant's new CEO, Ola Kellenius, has no plans to renew previous agreements.
The X-Class and Renault Alaskan stem from the group's broader technology-sharing agreements.
Fiat Chrysler is currently without a merger partner, although it has previously also been in talks with Renault's main competitor, PSA (owner of Peugeot, Citroen and Opel).
The collaboration between Nissan-Renault-Mitsubishi and Daimler has resulted in vehicles such as the Mercedes-Benz X-Class and Infiniti Q30 sharing the Nissan/Mercedes backbone as well as the jointly developed family of 1.3-litre turbocharged petrol engines used in Renault. and Mercedes. -Small Benz cars.
The Infiniti Q30 and QX30 are produced under the premium Nissan brand but rely on Benz chassis and powertrains.
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