New Merge Between Major Automotive Companies

With the high competition in the automotive field in Japan all the companies are moving towards bigger partnerships that can ensure change in their business model and stance in the market. This was described lately by the deal formed between Renault and Fiat creating the newest FCA-Renault which will change the market. As thought, this merge was expected to kill all competition including the main company Nissan which acts as a huge threat with head to head competitions against Renault.

However, recent news from high board members and Nissan declare that this partnership does not change anything in the market and that Nissan is still moving forward to excel faster than any competitor. This was through a meeting conducted between the heads of all three major automotive companies in Japan and the world, Nissan, Renault and Mitsubishi Motors. The meeting conducted in Yokohama where they have started a partnership that might oversell the FCA agreement.

This was commented on by many different bodies in the deal including credit rating companies and Fiat heads by saying, “The benefits that would accrue from a combination of Groupe Renault and FCA, we believe, would also extend to the Alliance partners Mitsubishi and Nissan. We look forward to engaging with them on even greater, mutually beneficial opportunities. It is unclear if the Nissan-Renault-Mitsubishi Motors alliance can advance their cooperation without resolving the cross-shareholding issue, which has been source of contention. The deal shows what could happen between Renault and Nissan down the road. Renault’s bargaining power will increase if the merger talks succeed.”