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

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 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