Renault and Nissan have shelved all plans for a merger, but will renew their alliance.
That’s what five senior sources have told Reuters.
A full union was long craved by former boss Carlos Ghosn.
But the plan’s demise will probably come as a relief to many at Nissan.
The Japanese automaker had long resisted merger proposals, arguing Renault didn’t pay its fair share for engineering work.
Ghosn said his 2018 detention on financial misconduct charges was part of a plot by Japanese executives to stop a merger.
Now the pair are expected to overhaul their alliance instead, while also restructuring the business.
A joint news conference Wednesday (May 27) is expected to detail a new ‘leader-follower’ model for different products and markets.
For example, Nissan may take the lead in Europe on sport-utility vehicles, while being the follower on vans and small city cars.
Nissan is then expected to set out cost-cutting measures, including major job cuts, on Thursday (May 28).
Renault will set out its plans a day later.
The moves come as the global health crisis leaves carmakers reeling.
It has sparked a slump in sales and interruptions to production around the world.
Though their relationship may have gone cool, Renault and Nissan seem to have decided that this is no time for a divorce.