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Nissan CEO: We Don't Need To Expand Beyond Current Partnerships

Motor Trend logo Motor Trend 6/6/2015 Kelly Pleskot

Fiat Chrysler CEO Sergio Marchionne made headlines last month when he said automakers should partner up to avoid wasting money on developing similar technologies. But Nissan won't be taking that advice, saying it doesn't need to take that route to remain successful.

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"I don't have to go beyond the boundary of what I'm doing to be competitive," Nissan CEO Carlos Ghosn told Reuters. "I can understand other people would have to."

According to media reports, Fiat Chrysler recently approached General Motors for a possible merger, only for the offer to be declined by CEO Mary Barra. The company has seen success in this area before. When Chrysler originally joined forces with Fiat, it reaped huge benefits for both parties, and the resulting company called FCA is now profitable.

Maybe Nissan already has its hands full, since it already runs with a large crew. Not only has Nissan aligned itself with Daimler AG and Mitsubishi Motors, but it has also formed a tight partnership with Renault. The Renault alliance has been in effect since 1999, giving Renault ownership of 43.4 percent of Nissan, while the Japanese company has a 15-percent stake in its sister company. By sharing development costs, the two companies managed to save "much more" than $3.31 billion last year alone, Ghosn claims.

The most recent example of this cost-sharing strategy can be seen in the Renault Kwid, a low-cost small utility vehicle that debuted in India last month. It will be the basis for a new Datsun -branded Nissan model that will arrive next year for other markets.

Source: Reuters via Business Insider

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