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The French are back! Renault wants to merge with FCA and Nissan AND Mitsubishi

AlexB

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John Elkann reject the concept of FCA buying PSA because of too much European concentration, he did leave door for PSA to come back with a nearly "All-Cash" bid to purchase FCA. Of course PSA doesn't have the money for such without being buried in massive debt. So PSA really don't have a chance without large outside investor :

But a different French Automaker have pop up to express interest in FCA:Renault.

Now the case of what Renault have outside of Europe is of course stakes in Nissan & (Nissan stake) Mitsubishi.

Nissan North America being folded into "Chrysler" provides following:

*Overtakes GM in U.S. Marketshare(FCA without Nissan will/has overtake in terms of U.S.Manufacturing importance & workforce size)
* Number One in Mexico Marketshare & Production
*Can carry the RAM brand at Nissan Dealerships, killing Titan and might be able to convert Toyota & Honda sedan buyers into RAM Pickups buyers
*Strengths the case behind a RAM Midsize truck as it would being replacing the Frontier (79,646 was sold in the U.S. in 2018)
*Nissan has spare capacity in the South that can be converted to RAM products.
*Nissan has In-House Captive Finance company that can expaned to Legacy Chrysler Dealership network, eliminating Ford/GM advantage with incentives & leasing
*Closing Nissan's Nashville campus & eliminating related personal will save money.

FCA would also be adding Infiniti brand which covers more of the U.S Luxury market more than where Alfa should be. Infiniti in the U.S. sold 149,280 vehicles in the U.S. while Cadillac sold 154,702. There's no doubt that an RAM-Based Infiniti model would destroy the Escalade.....the non-competitive QX80 sold 19,207 in the U.S. so there is a market for that type of product for Infiniti, and Alfa would comtinue to be a step above & more special.

Of course Nissan & Mitsubishi bring strong position in Middle East, and strong in non-Japan/China/India Asia including Australia.

Now back the " folding" .....under Ghosn there always was some sort of pushback for nationalistic-reasons against a real & full Merger on both sides....but under the newly appointed by the French Government Board members of Renault, the Netherlands/London Headquarters of FCA is consider the "neutral ground" for combining Renault and Nissan . It signals the French Government is willing to walk away from Renault, and maybe be willing to sell its stock in Renault to EXOR.

So the steps would be:
1*FCA (Netherlands/London and larger Company) buys Renault in an All-Stock deal with $FCAU as the surviving stock
2*EXOR buys out French Government to keep voting power above 40%
3* FCA offers to buy the remaining stock of Nissan & Mitsubishi Motors stock and threatens the Boards & Management of both with removal by force
4*Nissan & Mitsubishi Boards gives into FCA
5* FCA barrows money to buy the remaining stock of Nissan & Mitsubishi Motors using Nissan's A- credit rating

Thoughts?
Renault is seeking to restart merger talks with Nissan within 12 months as the first step toward the creation of a bigger auto conglomerate that will involve a bid by both companies for Fiat Chrysler Automobiles, the Financial Times reported.
The creation of a new alliance board led by Renault Chairman Jean-Dominique Senard has improved confidence that the two sides can push ahead with merger plans, the newspaper reported Wednesday, citing unidentified people familiar with both sides' thinking.
 
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Who wants to fight with Japanese considering their judicial system?

Renault has big problem with Nissan and they're at least 3 years away from controlling it.
Not to mention that Japanese want to avoid this outcome at any cost.
 
The new report states John isn't interested in any French deal. John is interested in more "underpinnings" deal especially in Premium.
 
Which report?
 
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