Renault will have to assuage Nissan’s hurt feelings before it moves ahead with capitalizing on synergies within the alliance.
As per a report from Japan;s Nikkei, Nissan Motor Co Ltd will reject a proposal from its French partner Renault SA on integrating the management of the joint venture. Nissan wants an equal capital relationship.
As per the report, Nissan’s management feels it has not been treated as an equal of under existing capital ties and a merger would bring finality into this sense inequality.
Renault has argued, the a tighter integration of management would be suitable since it would maximize synergies within the alliance.
In late March, the Financial Times had reported that Renault intends to restart merger talks with Nissan within 12 months.
Nissan’s spokesman declined to comment.
Renault was not immediately available for a comment.