Renault to hold a board meeting on April 6 to talk on Daimler deal

Article by Christian A., on August 29, 2010

Reuters reported that Renault SA has set a special supervisory board meeting on April 6 to talk about cooperation with German carmaker Daimler AG. According to unnamed sources, the principle of a stake swap below 10% has been established.

Renault has yet to release a comment on this matter though. Sources say that the Renault-Nissan group and Daimler AG are thinking about taking symbolic stakes in each other.

Both companies also intend to work on bigger joint projects amid pressure to reduce costs and produce cars with less emission.

Daimler is reportedly willing to buy a 3% stake in Renault this April. But Daimler won´t be spending any cash and instead, will use its own treasury shares as currency.

On the other hand, it's unknown how Renault, which has junk ratings and is worth less than a third of Daimler, will be able to finance the deal. The Nikkei business daily said that Nissan Motor Co. was eyeing taking a 1%-2% stake in Daimler.

Renault-Nissan CEO Carlos Ghosn has said time and again that he is open to taking in a third partner for the 11-year-old alliance, and that the partners were able to commit and explore projects more due to an equity relationship.

An industry source said that talk of an equity relationship during the April 6 meeting could form the basis of cooperation through joint purchasing and components sharing. However, this source said the option of limiting their partnership to a project-based one was still up for discussion.

If you liked the article, share on:

Comments

Recommended

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
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 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