Nissan And Fiat Are Up To Something

After what started out as a rumor,Fiat Chrysler Automobiles announced it wanted to partnerwith the Renault-Nissan-Mitsubishi Alliance. The two companies engaged in merger talks butNissan expressed disinterestin having the deal go through. Almost as soon as the discussions began,FCA withdrew its proposaland the deal was all but dead. Or was it?

The French government also expressed concern with the merger but Renault chairman Jean-Dominique Senardreportedly held secret talks to rekindle the deal.According to Bloomberg, FCA CEO Mike Manley may have also met with officials from Renault to salvage the merger talks. FCA has declined to comment on the situation.

Even though the deal appeared to be finished, negotiations may not have ceased completely. FCA cited "political conditions in France'' when it withdrew its offer, saying the French government would have to reduce its 15% stake in Renault after Fiat committed to French jobs and factories. While this has been going on, Renault'srelationship with Nissan has been seriously thrown into question. Renault has made it clear, repairing its relationship with Nissan takes precedence over any merger talks with FCA and the two sides are reportedly in talks to strengthen their alliance.

"The project remains, in my head, absolutely remarkable and exceptional," Renault Chairman Jean-Dominique Senard said to shareholders. Senard also said he remains "firmly convinced of the compelling, transformational rationale'' of the merger proposal.