What does Renault mean by “taking note” of the announcements made by Nissan and Honda?

Renault has chosen a brief six-line statement to comment on the Japanese automakers’ project. An analysis is in order.

Here we go, Nissan and Honda have officially begun discussions to merge and create the third-largest automotive manufacturer in the world, and Renault is aware. If this marriage materializes, the Honda-Nissan duo could generate a revenue of $191 billion. Be careful not to confuse revenue with profits, which is the best way to head straight for trouble. It remains quite a feat to compete with major players like Tesla and BYD. Honda, which dominates financially in this union, will have controlling influence over the future board of directors. A joint holding company would be created, listed on the Tokyo Stock Exchange.

For Renault, which has been dragging Nissan along like a ball and chain for years, this announcement could be a real breath of fresh air. This merger could allow the French manufacturer to elegantly sever its toxic relationship with Nissan. It must be said that the Renault-Nissan-Mitsubishi alliance, formed in 1999, has never truly regained its momentum after Carlos Ghosn’s troubles. Renault could also bolster its cash reserves by valuing its 35.7% stake in Nissan at a premium. For that, the diamond-shaped brand has an unexpected ally, Foxconn. The Taiwanese group, manufacturer of Apple’s iPhone, no longer hides its automotive ambitions and desire for Nissan’s assets. Do you see the little blackmail in the making? Here’s what “taking note” means—it’s neither a yes nor a no, but taking the time to form an opinion.

Let’s be clear: this merger still looks very much like a disguised rescue, as we keep reiterating. Nissan is struggling to turn things around despite massive layoffs and reduced production capacity. Honda, with its much stronger stock market capitalization, arrives as the white knight.

In short, this rapprochement could be a masterstroke for Renault, a fresh start for Nissan, and a strategic gamble for Honda. Only time will tell if this merger will live up to its promises or if it will join the long list of failed alliances in the automotive industry. The verdict will come in June 2025, when the financial structure is unveiled.