Renault-Nissan seeking to revive merger talks with Fiat

Renault vehicles being assembled at the carmaker’s Wuhan, China plant.

NISSAN Motor wants Renault to reduce its 43.4% stake in the Japanese auto company as the two brands try to reshape their global alliance in a bid to revive Renault’s merger talks with Fiat Chrysler Automobiles (FCA).

According to a report by news agency Reuters citing the Wall Street Journal, the discussions, which are at an early stage, started soon after the potential deal between Renault and FCA collapsed. Talks could extend until the end of the year, the report said.

But the negotiations could lead to an initial memorandum of understanding on restructuring as early as September, it added.

Nissan and FCA said they had no comment on the WSJ report. Renault was not immediately available for a comment, Reuters said.

FCA said in June it withdrew its $35 billion merger offer for Renault, blaming French politics for scuttling the deal. The French government owns a 15% stake in Renault.

Reuters had reported in June that a revival of the collapsed merger plans of FCA and Renault may hinge on the French carmaker cutting its stake in Nissan.