Renault, Nissan Discuss Alliance

PARIS — Less than a week after DaimlerChrysler broke off talks with Nissan Motor Co., French car and truck builder Renault is negotiating with the Japanese manufacturer.

It is reported that Renult and Nissan are engaged in discussions about forming a broad business alliance.

Although a Renault spokesman could not confirm it, newspapers in Japan are reporting that the alliance will include Nissan Diesel, the troubled truck manufacturing company partially owned by Nissan Motor.

In a short statement released March 16, Renault said the talks could lead to the purchase of up to a 35% stake in Nissan, which under Japanese law would give the French company veto power over Nissan board decisions, but not require it to consolidate Nissan’s huge debt, estimated at more than $20 billion.

The Nissan board of directors was scheduled to meet March 19 to decide on Renault’s offer.

According to the Japanese business press, Renault is expected to pay more than $4 billion for its stake in Nissan.