The automotive industry, shutdown because of the coronavirus epidemic, is going through an unprecedented crisis, which is not sparing French companies like Renault and PSA. The future of these two manufacturers depends on alliances, but the situation is reshuffling the cards.
The coronavirus plunges the global automotive industry into an unprecedented crisis. And asks questions for both the future of Renault and PSA.
Yes, with regard to Renault, even before the crisis, the alliance with Nissan and Mitsubishi was weakened. The three manufacturers were experiencing difficulties. There was even talk of plant closings. But it is clear that the virus is reshuffling the cards. And could result in a rebalancing of this three-way household for the benefit of the Japanese. One of the scenarios under study is in fact a Mitsubishi stake of 10% in the capital of Renault. Nissan already owns 15% of Renault, the Japanese would own a quarter of the capital. Objective: to strengthen the alliance between the three, to prepare for the end of the crisis.
The other major automobile alliance is that between PSA and Fiat Chrysler.
This alliance was concluded before the crisis, but it is not yet finalized. Can it be called into question? The two groups assure that it is not, and even that the crisis reinforces the interest of joining forces. What may change is the financial arrangements. This time, the French side could take advantage of the crisis to strengthen its position in relation to Fiat Chrysler. The coronavirus crisis will in any case accelerate the concentration of the automotive industry. The fate of the two French groups, Renault and PSA, is more than ever at stake in large alliances, the only ones capable of surviving such an upheaval in the industrial landscape.