Nissan, Renault eye joint holding company: report

31st March 2011, Comments 0 comments

Japan's Nissan Motor and France's Renault SA are considering a holding company that would put the two firms and several of their other interests under a single umbrella, a business daily said Thursday.

In an interview with the Nikkei newspaper, Nissan president Carlos Ghosn said Russia's leading auto maker AvtoVaz, which is 25 percent owned by Renault, would be incorporated in the proposed company.

Romania's Dacia and South Korea's Renault Samsung Motors -- both subsidiaries of the French auto maker -- would also be included.

If realised, the plan would mark the first time that major auto makers in countries across the globe came together under a single holding company, the Nikkei said.

The new company would draw up development, production and sales strategies, with each unit cooperating to execute the measures, including the exchange of personnel and technologies, the newspaper said.

Such a structure would help expand the use of common parts and joint procurement, the Nikkei said, citing Ghosn.

The process could take place in two or three years said Ghosn, who doubles as chairman of Renault, according to the newspaper.

Nissan and Renault entered a capital partnership in 1999. Renault currently owns a 44.3 percent stake in its Japanese partner, while Nissan holds 15 percent of the French auto maker's shares.

© 2011 AFP

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