Renault Mulling Holding Company for Integration with Nissan
Tokyo, April 26 (Jiji Press)--France's Renault SA is considering plans to set up a holding company to integrate its management with its alliance partner, Nissan Motor Co. <7201>, informed sources said Friday.
Under the plans, both automakers would become subsidiaries of the holding company. Nissan is expected to reject any such proposal because it wants to maintain its independence.
Around April 12, Renault sounded Nissan out about possible business integration, but Nissan refused.
The move by Renault has left the Japanese automaker suspicious. Only last month, Renault Chairman Jean-Dominique Senard told Nissan that discussions on the business integration issue would be put on ice.
If the two companies' relations deteriorate over the issue, their cooperation in technology development, procurement and other areas would be negatively affected.
[Copyright The Jiji Press, Ltd.]