Why the French Government Needs to Cut the Renault-Nissan Knot

Renault outlet

Everyone who is involved in the French automotive industry is aware of the surreal knot that is being tied between Renault and Nissan. When you involve Mitsubishi into the mix itself, considering how it is the third lover on the bed, the scenario appears to be a little too good for these companies. A manifestation of this fact lies in how the net profit of these three companies amounts to somewhere around 9.4 billion Euros, making the alliance the fourth strongest on the face of Mother Earth.

Regardless of how lucrative the alliance might have been for the companies in question, the fact remains that results are not, likely, to be same from the perspective of France, as a whole. When you get into the comparison of the companies, you realize that the net income per head generated by the employees of Renault is, almost, half of what is generated by the employees of Nissan. Consequently, the first order of business of the combined group would, obviously, be to stop some of the production lines in France. This will result into the loss of employment for a lot of people, owing to how the automotive production lines are responsible for the bread and butter of a large number of families in France.

The French government has got fifteen percent ownership share in Renault, meaning that it has got the veto power to stop such a catastrophe from happening. If such a  scenario is about to happen, therefore, the commoners of France would expect their government to stand up for their rights and interests, rather than looking to uphold some obscure economic principle relating to international trade. The French government has got an influence on the alliance, which is the reason why it has to ensure that things work out in favor of France!

Video link: https://www.youtube.com/watch?v=JC-mkuqidOg

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