The current hypothetical, but highly probable Honda-Nissan merger continues to evolve. Following up on our recent story about what could happen to Renault if a merger happens, it seems as though the French automaker could after all be looking for a way out of the Renault-Nissan-Mitsubishi Alliance. There have been talks of Taiwanese electronics contract manufacturer Foxconn – who’s also in the electric vehicle (EV) business – wanting to join the party as well.
But now, according to a report from Reuters, relayed by Automotive News, Foxconn is apparently in France this week to discuss the Honda-Nissan merger with Renault executives. The company could actually end up buying out Renault’s stake in Nissan, the report says.
This Could Mean A Way Out Of The Alliance For Renault
The details of the Foxconn-Renault meeting are still scarce, but from what we understand, Foxconn is in the process of negotiating Renault’s 36-percent stake in Nissan, which makes it its largest shareholder. Interestingly enough, the person in charge of the negotiations at Foxconn is Jun Seki, a former Nissan executive who now leads Foxconn’s EV operations. As we’re writing this, both Nissan and Foxconn have denied further comments.
But what could this all mean for Renault and the Alliance? Well, it could mean two things. One, that the Japanese auto industry is trying to both strengthen and isolate itself as it faces strong competition from China, especially in the EV space. A financial aid from Taiwan’s manufacturing might, especially in the electronics sector, would come as a helping hand for automakers such as Nissan, Honda and Mitsubishi who find themselves playing catch-up against Chinese automakers like BYD.
But this could also mean that the French auto industry is trying to do the exact same thing as it faces dwindling sales. Protectionism is running on full boil right now, and not just in the U.S., but also elsewhere in the world. It would therefore make sense to assume that Renault would want to focus on its home turf and even envision a merger with other French automakers such as Citroën, Peugeot and DS.
Could Renault Grab Citroën, Peugeot And DS From Stellantis?
With Stellantis currently undergoing important restructuring operations, and focusing more than ever on the North American market, there is a possibility that Renault could attempt to grab a chunk of the conglomerate’s French assets. I’m thinking of Citroën, Peugeot and DS who are also bleeding cash at the moment. This could help Renault create a new, stronger alliance for the French auto industry.
But it’s all way too soon to know what will come out of Renault’s discussion with Foxconn. One thing’s for certain is that Renault appears to want to part ways with Nissan after being its strategic partner since 1999. We’ll keep following this story closely and will report back here once we know more.
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