Renault-Nissan Merger Might Happen After 2020

2019 Nissan Altima 1

In 2016, Renault-Nissan alliance sold 9.96 million vehicles in the global market and every one out of nine cars globally sold is from this alliance

Renault-Nissan alliance is one of the strongest partnerships between two individual companies in the automotive world. In 2016, Renault-Nissan alliance sold 9.96 million vehicles in the global market and every one out of nine cars globally sold is from this alliance. We have already reported last week that both these companies are look at merging to increase the strength between them.

But there were lots of problems internally between the executives of Renault and Nissan as the Japanese manufacturer want to increase its share from current 15 percent on the French manufacturer as current they don’t have any voting rights but Renault has 43 percent stake in Nissan and they can vote on corporate matters.

Also Read : Renault-Nissan To Strengthen Their Partnership For Future Growth

nissan sylphy 1Nissan executives believe that they have more technology to develop and build new cars as compared to Renault. Nissan earn more money and has more market share compared to Renault. This conflict is one of the major reasons why the alliance is not moving forward. Nissan chief executive Hiroto Saikawa said earlier that the merger wouldn’t make any sense and it would have side effects.

Renault-Nissan alliance boos Carlos Ghosn confirmed that the merger will not happen until 2020. He said that lots of mergers collapse and destroy value – the strength of any company is the ability to motivate people and how are you going to do that if some of these people consider themselves as second-class citizens.

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renault kwid vs Datsun Redigo Comparison-12Ghosh also said that there is something on which we need to bring a solution and we need a solution that is specific. From this, we can confirm that problems between both these companies are not small and they are working on solving it. Charlos Gosn already said that they want to complete the alliance before the new management take over which is why he was pushing to close it soon.

Renault and Nissan are already sharing lots of platforms and models across the brands which help them to grow at a rapid pace than its competitors. In March 2018, Renault-Nissan announced that both companies will share technology, resource and man-power for developing new energy vehicles, autonomous driving technology and car-sharing services.