Elkann Touts Benefits for Nissan of a FCA-Renault Merger

Having Nissan and its Mitsubishi Motors affiliate join the proposed merger of Renault SA and Fiat Chrysler Automobiles would benefit all four companies, says FCA Chairman John Elkann.

He tells The Nikkei that the proposed FCA-Renault merger aims to establish a “common purpose” that also would generate value for Renault’s 20-year-old equity alliance with the two Japanese carmakers. Nissan acquired a controlling 34% stake in Mitsubishi in 2016.

Elkann says he has “huge respect” for Nissan and Mitsubishi. He adds that one goal of an FCA-Renault merger would be to welcome the Japanese companies as “valued and respected partners.”

Elkann’s overture is intended to soothe Nissan’s concerns over Renault’s separate suggestion that the Renault-Nissan-Mitsubishi alliance be restructured under a single holding company.

Nissan has chaffed at Renault’s dominating control over the alliance, declaring repeatedly that merging Renault and Nissan is unnecessary. Renault holds a 43% voting stake in Nissan, while Nissan’s 15% stake in Renault has no voting power.