The proposal currently being discussed is a full merger deal which will significantly modify the structure of Renault.
The Japanese multinational automobile manufacturer Nissan Motor Co., Ltd has reportedly announced that it is optimistic about collaborating with a combined Fiat Chrysler (FCA) and Renault, as long as it can protect the ownership of technology built over two decades of working with Renault.
Reportedly, there has been the probability of generating collaborations by sharing Nissan’s electrification, greenhouse-gas-scrubbing technologies, and autonomous drive know-how for powertrains. But FCA will not be allowed to use those technologies, after the possible merger worth $35 billion with Renault. The company needs these technologies to meet strict emissions regulations and better compete in an industry being transformed by electric vehicles.
Nissan can apparently look at increasing shares in Renault, or a merged Renault-FCA, to improve the future of the partnership.
According to reliable sources, Nissan will proceed with partnering with FCA only if the company can guarantee substantial profits from sharing technologies with FCA and only if it works out conditions that are satisfactory. If Renault intends to pursue this deal, the company will need to look seriously at supporting it.
Hiroto Saikawa, Chief Executive, Nissan, reportedly stated that the company believes the possible addition of a new member FCA into the partnership can enlarge the playing field for collaboration and create new opportunities for further synergies. The proposal currently being discussed is a full merger deal which will significantly modify the structure of Renault. It will require a fundamental review of the current relationship between Renault and Nissan.
Reportedly, Nissan will analyze and consider its existing contractual relationships.
FCA has been considering a Renault special dividend and stronger job assurances in a bid to convince the French government to back its proposed merger between the automakers. The deal will create the third-largest automaker of the world, but it will question the suitability of Nissan into a radically changed alliance, cited trusted sources.