Renault's chairman seemed to leave the door open to the proposed merger between the French carmaker and FCA.
Last May, Fiat Chrysler proposed a multi-billion dollar deal that would merge the company with French automotive manufacturer Renault. Although the proposal would have saved both companies many more millions in development costs, there were complications from the very beginning.
The government of France owns a 15% stake in Renault and is fiercely protective of potential job disruptions. France attached many conditions to the deal that FCA became increasingly frustrated with, eventually causing them to walk away from negotiations altogether.
Nissan was another complication. Renault and Nissan are currently part of a global alliance that has become strained since the failed merger. Nissan was surprised and concerned when the merger was proposed as they were never consulted and were unsure what it would mean for the future of the alliance.
Although France took the lion's share of the blame, Renault also blamed Nissan for the failed merger for refusing to provide their blessing. This has led to the Renault-Nissan global alliance to become strained in recent months.
Despite the fallout, Renault Chairman Jean-Dominique Senard seemed to leave the door open to future merger talks with FCA. “The matter is not on the table today. If (the project) were to come back one day on terms and conditions that would be acceptable for all parties I’d be delighted. But it’s not in the works,” he said during a Senate hearing.
Senard also said that the global alliance was “fundamental” to both Renault and Nissan. This seems to be a clear reference to the strained relationship the two companies have shared since the failed merger with FCA.
Complicating matters further are falling global vehicle sales, especially in emerging markets like India and China. In addition, rising emissions standards and a push for electrification are increasing development costs to the point where even large carmakers are seeking partnerships to share costs.
A merger between Renault and FCA would have shared those costs and created the third-largest carmaker in the world. “This matter is behind us today,” Senard said, although sources speaking to Reuters say that officials between the two companies are attempting to rekindle talks while addressing concerns between Nissan and the French government.
(via Automotive News Europe)