After settling a dispute with the French government over the balance of power in their car-making partnership, Renault (OTCPK:RNLSY) and Nissan (OTCPK:NSANY) will step up integration without moving toward a full merger.
"I don't think we're ready," alliance chief Carlos Ghosn told reporters. "Yeah, I know the markets want a merger. It's not only about the market. It's about the sustainability of what we're doing."
Following a week of mounting tensions over the role of the state in automaker Renault, French Prime Minister Manuel Valls said Sunday he is opposed to a full merger of Renault (OTCPK:RNLSY) and Nissan (OTCPK:NSANY), but wants to "preserve the alliance."
The two companies have been in a tech and capital partnership since 1999, making it one of the most enduring tie-ups in the sector. Renault holds a 43.4% stake in Nissan, while one of its subsidiaries controls 15% of its French partner.