business

French minister presses Renault to back Nissan reforms

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By Kazuhiro Nogi

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Le Maire on Tuesday reiterated that building up the alliance was the state's priority.

"Once the alliance has been reinforced and its solidity is beyond doubt then and only then can we think about consolidation," he said, referring to the proposed tie-up with Fiat.

Why is the government trying to strong arm Renault's business? They ruined the Fiat deal and now this. They seem really desperate. No wonder the government is willing to throw Ghosn under the bus. What are they hiding?

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Simple, with things going as they are, Nissan can start a Pacman stocks buyout to reverse the present status in which Nissan will become the dominant owner of Renault. Something France will not want.

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Obviously, Nissan must ask Renault to reduce its' Nissan Shares to adjust power balance in the Nissan - Renault alliance. I believe Renault should reduce its share to 25-35% from 44.4% in Nissan. Otherwise, Japanese Government should regulate foreign Company ownership percentage in the Japanese Auto Industry. It will not be a good look for Japan.

Renault and French Government are eager to take over Nissan Company by trying to Renault - Nissan alliance becomes one Company.

Nissan was profitable Company and selling cars more than the Renault. Also, the Renault and French Government wanted to access the whole Nissan technology, which currently Renault cannot access to.

Renault had asked Subaru for 4WD technology in 1998 but Subaru had suggested Renault to ask Nissan. That time, Nissan was deeply in trouble and nearly bankrupt. Renault had offered to buy 36.8% of Nissan shares for $ 5 billion and the Renault becoming partner of Nissan in 1999. Later Renault has increased its stake in Nissan to 44.4 percent after Nissan bought a 15% stake in Renault.

Renault has too much power over Renault - Nissan Alliance. It must be reduced to equal partner. There's no question about both Companies have benefited from alliance, but becoming one company may have complicated in controlling over the Company. Japan does not want to lose its Nissan name and Company to foreign Company and also, the french side too.

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