Ghosn: No Renault-Nissan Merger Until 2020 or Later

Carlos Ghosn, who chairs Renault SA and Nissan Motor Co., tells a Bloomberg event in Paris that merging the two companies won’t happen until after 2019, if at all.

Ghosn, 64, is eager to strengthen the alliance between the carmakers, which began in 1999, before he retires a year from now. But he considers a merger only one of several ways to achieve that result.

More important, Ghosn says, is figuring out how to create an enduring partnership without making some employees feel like second-class citizens. “Lots of mergers,” he warns, “collapse and destroy value.”

The Renault-Nissan alliance was formed when Nissan was near bankruptcy. Renault acquired a 44% stake in Nissan and voting rights on corporate decisions. The French government also owns a 15% voting stake in Renault.

Today Nissan is the larger and richer company. Yet it continues to hold only a 15% nonvoting stake in Renault. Separately, Nissan acquired control of Mitsubishi Motors Corp. in 2016 and made MMC a part of the alliance.

Ghosn says he and Nissan CEO Hiroto Saikawa, also 64 years old, hope to forge a structure that will outlive the current management team of both companies. Ghosn says a specific solution is needed that will maintain the identity of each brand.