Renault Cautiously Mulling “All Options” In Nissan-Honda Merger

Rivalling Japanese automakers Nissan and Honda recently made the shock announcement of merging.

Rivalling Japanese automakers Nissan and Honda recently announced their landmark decision to conduct merger discussions. The ensuing new business structure set to form, which also could include Mitsubishi participating, is set to be the world’s third largest automotive group too.

This then poses a question as to where French automaker Renault stands. As a refresher, Renault and Nissan have an existing “alliance” partnership, and it’s also Nissan’s top shareholder with a total stake of 35.7% - it directly owns 17% whilst the remaining 18.7% is held via a French trust.

French automaker Renault, Nissan's largest shareholder, issued a statement where it cautiously reaffirmed its position towards Nissan proposed coming-together with rivals Honda.

Following Nissan and Honda’s joint announcement late last week, Renault also issued its own response not too long after. Besides acknowledging said merger announcement “which are still at an early stage,” Renault says it will continue to execute its strategy in its alliance with Nissan.

The latter sees Renault reaffirm its commitment towards the continued roll-out of projects that “create value for the group,” with the French automaker also emphasising how this also comprises of “projects already launched within the Alliance.”

Renault says it remains committed to the existing "Alliance" partnership it has with Nissan, and has committed to continue executing its planned projects for which. 

The French firm adds it will “consider all options based on the best interest of the Group and its stakeholders.” In other words, it appears Renault won’t be doing anything drastic and too soon with its stake at Nissan despite the shock pivot to merge with one of its biggest rivals.

Following their joint announcement, both Nissan and Honda signed a Memorandum of Understanding (MoU) to explore a merger, which is widely seen as a move to pool each firm’s respective resources and stave off heightened competition from Chinese rivals.

Announced and revealed last week, Nissan and Honda are set to merge, and it could also see Mitsubishi participating.

However, some also viewed it negatively - chief amongst which being ousted and exiled former president and CEO Carlos Ghosn. You can read the scathing remarks of Nissan's disgraced former head, in which he also alluded the move at being "desperate", by clicking these blue words...

Critically, the merger is being billed by many observers as a move that will save ailing Nissan from extinction. Both firms are poised to finalise merge terms, including share transfer plans, as early as June 2025. Mitsubishi, on the other hand, aims to decide on its participation here by end of Jan 2025 instead.