Nissan CEO: No Advantage in a Merger with Renault

Nissan Motor Co. CEO Hiroto Saikawa tells The Nikkei he sees “no merit” in fully merging the company with alliance partner Renault SA.

Renault owns 43% of Nissan. The Japanese carmaker holds a 15% stake in Renault and a 34% controlling interest in Mitsubishi Motors Corp.

The French government has been pushing to fully integrate Renault and Nissan to make their 19-year-old alliance “irreversible.” But skeptics believe France’s primary mission is to gain control of Nissan as a way to increase jobs and bolster its domestic auto industry.

Carlos Ghosn, who chairs all three companies but is nearing retirement, has said a merger isn’t likely unless the French government sells its 15% stake in Renault. Saikawa, cites unspecified “side effects” of combining Nissan and Renault. He tells The Nikkei he prefers to maintain the three-member alliance structure and simply work to manage the partnership more efficiently.

Saikawa says the main objective of the Renault-Nissan alliance has always been to maintain independence of its members while maximizing their growth.