The Renault-Nissan Alliance Takes A Hit As Joint Functions Get Cut

Without former chairman Carlos Ghosn at the helm to press ahead with further integration, the Renault-Nissan alliance has taken a serious blow, according to the Financial Times.

Certain joint functions have been cut as certain arms of the business lay off staff.

Ghosn’s “CEO office” was the brain of day-to-day alliance functions. Now that his office has been disbanded, the collaboration between the two auto giants has been rolled back considerably. Just before his arrest in November, Ghosn had pledged to bring Renault and Nissan even closer together, and to “make the alliance irreversible.” This process had been ongoing for some time, and in March of 2018 Ghosn had picked team leaders for joint functions in several areas, including quality assurance, engineering, and purchases, to name a few.

Renault and Nissan had a joint light commercial vehicle business unit reporting to Ghosn as early as 2017. The unit sought to share Nissan’s truck sales data in key markets, while Renault provided expertise in vans. However, with Ghosn gone, the game has changed and the relationship between the two auto makers has been shaken to its core. Some alliance functions have been put to the chopping block, whereas others have been simply ignored, the Financial Times reported.

Nissan has been seeking more influence within the alliance, as Renault owns 43% of Nissan. When Fiat-Chrysler reached out to Renault for talks regarding a merger, leaving Nissan without a say in the matter, tensions only grew.

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