France Proposes Nissan-Renault Business Integration

Economy Politics

Tokyo, Jan. 20 (Jiji Press)--The French government has informed the Japanese government of its hope of drastically strengthening the partnership between Nissan Motor Co. <7201> and its French alliance partner, Renault SA, through business integration, it was learned Sunday.

The French government, the top shareholder of Renault, is believed to be aiming for a boost to its influence over Nissan, in which Renault holds a 43.4 pct equity stake.

The French government sent a delegation to Japan last week to discuss the Nissan-Renault partnership following the arrest of former Nissan Chairman Carlos Ghosn on charges of financial misconduct and special breach of trust. French representatives held talks with Japanese government officials and Nissan executives.

According to informed sources, the French officials proposed strengthening the Nissan-Renault partnership in technology and management terms. They are believed to have proposed business integration of the two automakers under a joint holding company.

As the Japanese government is not a shareholder of either company, government officials told the French representatives that the two private companies should strengthen their partnership through bilateral negotiations, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press