Renault is said to be looking into restarting merger talks with Nissan sometime in the next 12 months as part of a move towards the creation of an auto conglomerate to rival Toyota and Volkswagen. According to the Financial Times, the merger would pave a way for the companies to make a bid for Fiat Chrysler Automobiles (FCA).
It’s not the first time Renault has made an attempt at securing FCA. Discussions of a possible merger took place a few years ago, but former Renault-Nissan-Mitsubishi alliance chairman Carlos Ghosn’s proposal then was stopped by the French government.
The report added that FCA is keen on seeking a partnership or merger, and that FCA chairman John Elkann has already met with other rivals, including the PSA Group of France. Renault, Nissan and FCA all declined to comment on the report.
The Renault and Nissan alliance never made it as far as a complete merger, although Ghosn had planned to cement the two companies prior to his resignation from the alliance following the financial scandal that emerged late last year. Nissan had resisted such a move then, and with trust still a residing issue, it remains to be seen if a deal can be struck.
The idea of adding FCA into an equation would be a tall order for any carmaker or alliance, and in this case the matter is compounded further by the fact that Renault’s most powerful shareholder is the French government, which would have a say in the matter, given that adding another brand would potentally dilute its stake.