Macron calls for strengthening of Renault, Nissan ‘flagship’

Bloomberg

French President Emmanuel Macron offered a political boost to the fraught partnership between Renault SA and Nissan Motor Co, calling for their car-making alliance to be strengthened.
The combination is “a giant and a force that must not only be preserved but developed through synergies and alliances in all their forms to make it stronger in the face of international competition,” he said in a speech to the French community in Tokyo.
At a joint press conference with Japanese PM Shinzo Abe, Macron said Renault and the alliance are solid and the role of the French government is to protect big companies and especially their employees.
“We want the alliance and good cooperation with the Japanese,” he said.
The leaders met at a difficult time for Renault and Nissan, whose relationship has degenerated into an open struggle for power since the arrest in November of former Chairman Carlos Ghosn.
The French state is Renault’s most powerful shareholder and its presence on the board has long created friction with Nissan, which is pushing for a lowering of the stake.
Fixing the troubled alliance took on new urgency this month following the collapse of merger talks between Renault and Fiat Chrysler Automobiles NV. The French carmaker held the discussions behind Nissan’s back, and in a last-minute maneuver the government scuppered a planned deal, saying a clear backing by the Japanese company was missing.
Nissan CEO Hiroto Saikawa said the company will speed up talks to strengthen the two-decade-old partnership, which is defined by a lopsided shareholding structure.
Renault holds a 43 percent stake in Nissan with voting rights and Nissan has 15 percent in the French company without them.
Renault Chairman Jean-Dominique Senard has pushed for a merger with Nissan, which also irked the Japanese company. French Finance Minister Bruno Le Maire has said repairing the alliance should be a priority for the carmakers, while Senard has expressed deep disappointment at the collapse of the planned tie-up with Fiat.