Renault-Nissan merger idea revived


Size does matter: Frames of various car models make their way down the flex line at Nissan Motor Co’s automobile manufacturing plant in Smyrna, Tennessee. Size – always a factor in the auto industry – has become increasingly critical. — Reuters

LONDON: A merger between long-time alliance partners Renault SA and Nissan Motor Co would codify a global automotive pecking order dominated by three mega players, putting pressure on everyone else to bulk up or risk being left behind. They just need to find a way to agree.

The French and Japanese manufacturers, along with third partner Mitsubishi Motors Corp, churn out 10.8 million cars each year - nearly double Ford Motor Co’s global deliveries. The alliance – currently held together by a series of cross-shareholdings – would be second only to Germany’s Volkswagen AG, with Toyota Motor Corp a close third.

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