BEIJING, June 26 (Xinhua) — Nissan and Renault have shelved a comprehensive merger plan championed by former leader Carlos Ghosn and have chosen to repair the troubled alliance in an effort to recover from the impact of the new corona pneumonia outbreak, according tomedia reports. Nissan has long opposed Renault’s proposed full merger, and its management believes it is not paying a fair share of its work in Japan, which some fear could damage the partnership.
Now, with automakers around the world affected by the outbreak, the two companies are planning to overhaul the alliance. Apart from joint sourcing of spare parts, the alliance has largely failed to translate its global scale into a competitive advantage. Mitsubishi, Nissan and Renault declined to comment formally on the alliance’s plans.
The two troubled carmakers will this week announce a mid-term restructuring plan as part of a “peace treaty” aimed at resolving long-standing tensions, according to people familiar with the matter.
Both Nissan and Renault plan major restructurings and cost-cutting, which could affect tens of thousands of jobs. Nissan will announce its measures on May 28th, and its French partners may follow suit the next day.