Carlos Ghosn, Renault S.A.’s CEO, said that merging with alliance partner Nissan Motor Co. was still “not feasible” after unveiling three-year goals that did not meet previous targets.
During a conference call with analysts, Ghosn said that management integration with Renault’s 43 percent-owned Japanese affiliate is not part of the mid-term strategy because of internal opposition at both companies.
He added that such a move would backfire because of the companies' ingrained cultural differences and determination to remain independent.
Max Warburton, a London-based analyst with Sanford C. Bernstein, said that a Renault-Nissan merger would immediately lift the value of Renault's equity and Nissan's. He added that Ghosn's opposition to full integration “misses the point.”
Renault recently announced its first medium-term plan since the 2008 financial crisis, when Ghosn scrapped 2009 targets for a six percent operating margin and 3.33 million deliveries.
Ghosn pledged 3 million in annual sales by 2013 and a margin of more than five percent. [via autonews - sub. required]