Just a week ago, Fiat Chrysler Automobiles shocked the motoring industry when they proposed a merger with Renault. Less than 24 hours later, another bombshell; Renault is actually considering the merger. But while it sounds easy as FCA hopping in Renault's graces, there's still a lot of things to discuss; mainly, the Alliance.
The Alliance is comprised of three main brands: Renault, Nissan, and Mitsubishi, along with their other subsidiaries. The French are looking into the offer, but the Japanese have yet to say anything about it. That is, until now.
Nissan Motor Corporation CEO, Hiroto Saikawa, released a public statement on the possible partnership between FCA and Renault. This is what the executive had to say:
"I am aware that FCA’s merger proposal will be discussed by Renault’s board this week.
I believe that the potential addition of FCA as a new member of the Alliance could expand the playing field for collaboration and create new opportunities for further synergies.
That said, the proposal currently being discussed is a full merger which—if realized—would significantly alter the structure of our partner Renault. This would require a fundamental review of the existing relationship between Nissan and Renault.
From the standpoint of protecting Nissan’s interests, Nissan will analyze and consider its existing contractual relationships and how we should operate business in the future."
By the looks of it, Nissan is still somewhat on the fence about it. While they do acknowledge that collusion can be good for the Alliance, there's the need to protect their own backyard, which is understandable. That's not to say they're totally against it, though. After all, Nissan is reaping a lot of its current successes thanks to a partnership.
But Nissan's statement does raise a valid point: What will their partnership with Renault be like if this deal does push through? Also, does this mean Nissan will have to share their technologies with the Italian-American automaker as well? Whatever the case may be if the merger proceeds, this venture could be the biggest in the automotive industry in recent history.
If ever, there will be 16 brands on board, which will include Renault, Nissan, Mitsubishi, Renault Samsung, Dacia, Alpine, Datsun, Venucia, and Lada on the Alliance's part, and Fiat, Chrysler, Dodge, Jeep, Ram, Alfa Romeo, and Maserati for FCA. That also means the deal will surpass the Volkswagen Auto Group in terms of number of brands under one roof.