Ghosn Confirms Renault, Nissan Are Reviewing Alliance Structure

Carlos Ghosn, chairman of Renault SA and Nissan Motor Co., has confirmed publicly for the first time that the two companies are studying their cross-ownership structure with an eye toward a possible merger.

Ghosn tells The Nikkei that he considers the existing venture “irreversible.” But he acknowledges that the French government and the financial community remain skeptical and are pushing for stronger ties before Ghosn retires.

Renault currently owns 43% of Nissan, and Nissan holds a 15% nonvoting stake in Renault. Mitsubishi Motors Corp. joined the alliance in 2016 when Nissan acquired a 34% controlling stake in the carmaker.

Merging the two carmakers is complicated by the home government stakes held in each company. Nissan signaled three years ago its discomfort at French government interference with Renault’s business decisions. It declared reluctance to further bind the two companies until France sheds its 15% stake in Renault—and repeated that concern earlier this month.

Ghosn says a solution must be found by 2022 that will remove preoccupation about the future of the alliance. “If I am not able to bring a solution, I should go,” he adds.

Bloomberg News said in March that Renault and Nissan were discussing a plan to fully merge under a single stock into an entity headed by Ghosn. He tells The Nikkei that all options are being studied.