France Urges Renault to Focus on Nissan Alliance

French Prime Minister Bruno Le Maire says the country would be willing to reduce its 15% stake in Renault, if doing so would help strengthen the company’s 20-year-old alliance with Nissan Motor Co., Reuters reports.

France wields considerable power at Renault, because its stake carries double voting rights.

Le Maire also says the state would support a move to slash Renault’s 43% stake in Nissan, if it would contribute to the same result. The Japanese carmaker has advocated just such a step to help balance control over the the alliance.

Le Maire suggests Renault set aside an attempt to revive last week’s withdrawn bid by Fiat Chrysler Automobiles NV to merge the two companies. FCA canceled the offer after France demanded last-minute changes to the plan, then requested the board postpone for the second time a decision to consider the bid.

Now Le Maire is urging Renault focus on easing tensions in its partnership with Nissan and its Mitsubishi Motors affiliate. The alliance has been in crisis mode since Carlos Ghosn, who had been chairman of the alliance and all three member companies, was arrested in November on suspicion of financial misdeeds at Nissan.

Analysts tell Reuters that they favor France slash or sell off its entire stake in Nissan. Last week Le Maire told Le Figaro that the government’s long-term goal is to step away from trying to run companies.