Renault-Nissan should strengthen alliance

Strengthening the Renault and Nissan alliance is “vital” as the automotive industry undergoes rapid change through electric and connected vehicles.

So says France’s finance minister Bruno Le Maire at the Group of 20 major economies’ finance ministers and central bank governors meeting in Fukuoka, Japan, on June 9, Reuters reports.

Protecting jobs, Renault’s factories and technology is his main concern, he says.

Le Maire says synergies Renault has enjoyed with Nissan could help the alliance take the lead in new technologies, adding it’s essential not only to preserve but to strengthen the alliance.

He said in an earlier interview with Agence France Presse that the French government was ready to reduce its 15% stake in Renault in the interest of bolstering the automaker’s alliance with Nissan.

This just days after Fiat Chrysler (FCA) withdrew its US$35 billion merger offer for Renault, blaming “political conditions in France”.

The French government had welcomed the merger plan but went too far by pushing for a series of guarantees and concessions that exhausted the FCA’s patience, sources told Reuters.

Le Maire’s Japan visit follows a period of strained relations between Renault and Nissan, after the arrest of former boss and alliance architect Carlos Ghosn in November.

Renault owns 43% of Nissan, while Nissan has a 15% stake in its French partner, which Reuters says has been a source of friction.

Le Maire visits Tokyo on June 10 to meet business leaders and government officials.