Renault and Nissan are keen to sort out any rough patches left in the two automaker's current alliance and will reportedly restart talks about merging entirely in the next year. The two companies also reportedly have another automaker eyed to create a larger automotive powerhouse: Fiat Chrysler Automobiles.
The report comes from The Financial Times and said that a merged Renault-Nissan would make a bid for FCA, which has sought out cooperation among other automakers for years. The late FCA CEO Sergio Marchionne was candidly open about his desire to merge the automaker with another for better profitability. The newspaper added former Renault CEO and chairman of the Renault-Nissan-Mitsubishi Alliance, Carlos Ghosn, held talks with FCA about a merger three years ago. The French government, which holds a stake in Renault, shut down any chance at a merger, according to unnamed sources in the report.
The news of a potential future merger with Renault and Nissan follows reports that FCA rejected a merger offer from another French automaker, PSA Group. The Financial Times also named Chairman John Elkann as one of the driving forces inside FCA who continues to seek out potential merger partners. Current FCA CEO Mike Manley has taken a similar tone to his predecessor and has been open to conversations about partnerships, joint ventures, and deeper areas depending on the company.
A Renault-Nissan-FCA automaker would have the scale to challenge global automakers such as Toyota Motor Corporation and the Volkswagen Group.
The future of the current Renault-Nissan alliance hinges on a new alliance board that newly appointed Renault Chairman Jean-Dominique Senard created. According to the newspaper, the new board has helped reset relations between both automakers following Ghosn's arrest and departure last year.