France tries to cut Renault stake to support Nissan ties
The financial minister of France, Mr. Bruno Le Maire said that, “France showed positive sign for considering to pair back its almost fifteen per cent stake in Renault in the interest of joining the alliance of the automaker with the Japanese partner called Nissan.
During an interview session of the G20 finance’s ministers meeting which carried out in the Japan, Mr Maire also told that Nissan and Renault should definitely work on to strengthen ties before exploring next level of merger possibilities.
The financial minister’s comments came only few days after Italian and United States of America carmakers Fiat Chrysler ready to make a proposed merger along with Renault, also said that the fights have now become unreasonable because of political resistance in Paris.
The minister further told that, “We can decrease the status of stake in the capital of Renault. This is not considered to be a problem at the end of the process, but we are having extremely solid auto firm and a massive alliance between the two greatest manufacturers of the world namely, Renault and Nissan.”
ON 27th of May, Fiat Chrysler surprised the auto industry with the proposed association of equals with Renault which would be together with the Japanese partner of Renault, Nissan and Mitsubishi motors, who are responsible for generating a car giant spanning across the world. The mergers group have been said to be world’s biggest with total sales of almost 15 million vehicles as compared to the motor giant Volkswagen and Toyota which sells around 10.6 million globally. But the deal declined on Tuesday, due to Fiat Chrysler facing the huge blame at the Paris.
Fiat Chrysler said in a statement that, “It has become a clear indication that the political conditions in the France are not doing well for a such combination to perform successfully.”