Fleet News

Renault looks to Nissan merger

RENAULT executives are already thinking about turning their far-reaching alliance with Nissan into a merger. But the result of the move would be a bi-national company rather than a single entity, Renault Group executive vice-president Francois Hinfray revealed at the show.

Hinfray said both sides accepted that it was not possible to mix two companies which were so far removed from each other in terms of distance and culture. He said: 'We are building links and aiming for a merger in the long term. In the meantime, it is necessary for us to reinforce the respective potentials of both brands. And while the market share of each company has to be managed in a completely separate manner, the target Renault set three years ago of reaching four million annual sales by 2010 has now become eight million from the bi-national company.

'We sold 2.3 million units last year and are making satisfactory progress toward expansion. We are helping Nissan strengthen in Europe and expect them to help us in Asia. Companies will need to sell five million units a year by 2010 in order to maintain an international presence and remain competitive.'

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