Renault SA and Nissan Motor Co. have given themselves two years to decide on a possible merger or find an alternative mechanism to enhance their partnership, people familiar with the matter said.
A solution to cement ties would be found before Carlos Ghosn, the chairman of both automakers, is due to step down as the CEO of Renault in 2022, according to the people, who asked not to be named because the talks are private. Ghosn, currently serving a four-year term at Renault, had previously said he may step down before his tenure ends. Renault shares rose as much as 3.1 percent, the most in seven weeks.
The carmakers are in talks about options including setting up a holding company and putting Renault and Nissan under that umbrella, according to the people. It was reported in March that Renault and Nissan are in talks to merge under a single stock, a move that could help them better pool resources in the new age of electrified vehicles and autonomous driving. Ghosn has since pared down expectations of a quick deal to combine the companies, saying the specter of failed mergers in his industry loomed large.