Renault-Nissan merger is not feasible, says Carlos Ghosn

Article by Christian Andrei, on February 15, 2011

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]

Topics: renault, nissan

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries