Renault-Nissan merger is not feasible, says Carlos Ghosn

Article by Christian A., 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

Recommended

After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
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