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car deal with huge consequences :: Investor.bg



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car deal with huge consequences

Photo: Reuters

A possible merger of old Nissan and Renault partners can create dominance in the automotive sector worldwide in three key players, the competition will be tough, Bloomberg writes.

French and Japanese car companies and third alliance partner Mitsubishi to jointly produce 10.8 mln. Cars per year, which is two times higher than the US world offer Ford competitor. If the merger between Renault and Nissan, the new company will be the second largest in the world. First will be the German automaker Volkswagen, and third place will be the Japanese company Toyota.

Company size has always been a factor in the industry. Automakers increased costs to invest in the development of self and electric cars. At the same time, the company carpool as Uber accept clients car companies and trade tension has a negative impact on the industry.

Renault President Jean Dominique Senarda, who held this position since January instead arrested Carlos Ghosn, revived the idea of ​​merging the two companies, familiar with the negotiations who requested anonymity.

Nissan and Renault, the Japanese government hinder efforts to drive merger talks, writes Financial Times. The relationship between the partners have been strained over the arrest Gon in Japan.

"For mass producers of all size. The three countries want to continue their cooperation. But it should be re-examined after the arrest Gon, "explains the analyst of the Frankfurt financial company Bankhaus Metzler Juergen pepper.

Senard proposal provides for equality in the ownership and management advice. It would be beneficial for the Japanese automaker, which was saved from bankruptcy Renault nearly 20 years ago.

Consortium structure desperate need of reform for several years. Currently, Nissan more sales of the Renault, but not right out loud in the decisions of their partner. Unbalanced relationship between the two countries have created tensions in the past. The problem is exacerbated in 2015 when the French government, which owns 15 percent of Renault, Nissan derail a plan to get right out loud.

Analysts say, and what risks, see the continuation of the analysis Bloomberg TV website Bulgaria!

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