Paris says in Tokyo that he wants the integration of Renault-Nissan

PARIS – The French government has informed this week in Tokyo that it would seek to integrate Renault and Nissan Motor, most likely under the umbrella of a single holding company, Nikkei learned.

A delegation including Martin Vial, a director of Renault appointed by the French government, went to Japan to make known the intentions of Paris to the Japanese authorities. The delegation also said that Renault wanted to appoint the next president of Nissan, a post that has remained vacant since the ousting of the leader of the alliance, Carlos Ghosn, arrested. The initial alliance agreement gives the French manufacturer the right to choose the best Nissan leaders.

While tensions between the two partners rise to the surface in the absence of Ghosn, Paris – the largest shareholder of Renault – has renewed its efforts for a merger. Nissan is opposed to a combination, not least because the French government would be a major player in a shared holding company, potentially giving it greater influence over the Japanese automaker.

The French government holds about 15% of Renault's capital, which in turn controls 43.4% of Nissan's capital. Nissan holds only a 15% non-voting interest in its French partner.

Renault is expected to soon appoint Mr Ghosn's replacement as President and Chief Executive Officer, while Paris will lead the search for a successor. The new management could take a tougher stance in negotiations with Nissan at the request of the French government.