AutoBeta(AutoBeta.net)06/16 Report--

According to news from US stocks on June 16, Mike Manley, chief executive of Fiat Chrysler, met with Renault executives in Paris on Friday to start new negotiations on a possible resumption of the merger. It is reported that the potential agreement will be based on the original plan, but will no longer involve Nissan.

FCA and Renault executives agreed to launch a new round of merger talks, but the problem is Renault's partnership with Nissan. Renault is said to be willing to significantly reduce its stake in Nissan in exchange for Nissan's support. FCA said that the previous decision to withdraw the merger offer was carefully considered, mainly because the French government did not support it.

The explanation given by FCA is not convincing. After all, the French government is a major shareholder in Renault, and FCA executives should have thought the French government would be involved. It is even possible that the government in Rome, Italy, has intervened.

As Fiat Chrysler and Renault emerge from failed merger talks, whether the two sides can resume talks will depend on overcoming two major obstacles: changing the role of the French government and winning the support of Nissan.

The French government needs to reduce its stake in Renault after obtaining Fiat's commitment to French jobs and factories, people familiar with the matter said.

Given the French government's shareholding ratio, Renault might be a good start. Voters may be happy to see the government reduce its influence in companies, if that means more cash is spent on job-creating car investments.

In addition, Renault may be able to reach a new agreement with Nissan based on a fairer shareholder division. Unless something changes, international recriminations are expected to continue.

Renault executives have said it would be more important for Renault and its largest shareholder, the French government, to repair relations with long-time partner Nissan than to consider a deal with Fiat. The French government believes that explicit support from the Japanese carmaker is crucial to the success of the Fiat-Renault merger.

Despite recriminations after the failure of the talks, Renault, Fiat and France have opened their doors to possible deals as they prepare for the changes that have engulfed the car industry.

Sennard's comments were clearly a counterattack after Nissan refused to support Renault's alliance with Fiat. Renault owns 43.4 per cent of Nissan, and the abstention means that the reform, which needs to be agreed by more than 2/3 of the voting rights of shareholders present at the meeting, is "aborted". Renault chose to abstain because it feared it would not be able to get enough seats on Nissan's new board.

It may take a long time for the alliance between Renault and Nissan to resume. With the occurrence of a series of events, their mistrust of each other has reached a freezing point. This incident also shows that the goals of the government and enterprises are often not exactly the same, the decisions of the government will also affect the decisions of the enterprises, and the government also wants to ensure the scale of the local economy. Senior business officials hope to lead enterprises to a better future.

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