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Renault and Fick, which merged yesterday, hope to be able to use Nissan's electric vehicle technology and CO2 emission reduction technology through technology sharing in the alliance.

Renault and Fick's biggest intention in this merger is to launch pure electric vehicles by sharing electric vehicle platforms and autonomous driving technology, and then stick their own brands to sell through their own dealer network. Industry experts say that sharing research and development costs in the development of new electric vehicles can reduce unnecessary investment and can be put into production and go to market faster. Renault and fiat are both known for making small cars, and both rely on this level of market profit. But most of the all-electric small models include Renault's own ZOE, Tesla's model 3, BMW I3 and others. But the biggest cost of these models comes from EIC technology, and battery technology and electrification are Fick's biggest weaknesses. Therefore, both manufacturers will focus on Nissan in the alliance respectively. Nissan's electrification technology makes Nissan have a seat in the Renault Fick Alliance.

Every time Nissan transfers a platform, powertrain or other technology to Renault, Renault must pay a security deposit or royalty for the use of that technology. This also means that if Fick uses the same technology from Nissan, it must pay the same fee, but Nissan pays Renault less for the technology than Renault charges Nissan.

A Nissan spokesman declined to comment on the technology-transfer fee regime, and Renault's merger with FCA has left the 20-year-old partner uneasy that its influence within the alliance will decline.

But Nissan has established itself in the Renault FCA alliance through electric vehicle technology, and Renault and Chrysler want to develop a common electric vehicle platform by sharing Nissan's experience in Leaf. In 2010, Nissan Leaf has been on the best-selling list of electric vehicles in the world, with cumulative sales of more than 400,000 units. Nissan has also made certain achievements in hybrid technology. Nissan can use electrification technology as a negotiation tool with Renault FCA.

On the other hand, the merger of FCA and Renault will not cause structural changes to Nissan's partnership with Renault, but Nissan can benefit from a more balanced capital structure after the merger. Since the new company is headquartered in the Netherlands, this will give the French government less say in the combined Renault FCA. The new company will have only 7.5% of the French government's voting shares, which will ease Nissan's strained relationship with Renault more effectively.

The merger of Renault and FCA failed to turn more disadvantages for our domestic situation. The domestic partners of both parties of the joint venture are two different automobile groups respectively, and they are also competitors in the business category. In contrast, Renault's main models in China, Koleo, Kolejia and imported models, have been lagging behind FCA's JEEP brand in SUV sales. The JEEP brand has four car series: home-made guide, free light, free man and big commander, and imported models include Grand Cherokee and Wrangler. Total sales for April were 48297. According to Dongfeng Renault's official website, at present, its Wuhan plant has an annual output of 150,000 vehicles. From January to April this year, Dongfeng Renault's total sales fell sharply by 76.67% year-on-year, only 6390 vehicles, accounting for only 0.04% of its annual output, but the two domestic performance is not optimistic.

On the other side of the ocean in the United States, FCA and Nissan are competitors in the pickup market and SUV utility models. Nissan's performance in the North American market in the first quarter of 2019 is weak, and FCA will not make concessions to Nissan in the North American market. Sources say Renault FCA will negotiate with Nissan in this market to seek compromise.

Nissan will have an important say in the FCA Renault merger, as the future automotive industry will gradually shift to electrification and pure electrification, Nissan can dominate the future electrification development in the alliance.

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