Struggling sales may see the brands rethink a partnership 21 years in the making.
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Car makers Nissan and Renault have pressed pause on their plans of a merger as both brands struggle to weather the COVID-19 pandemic.

According to news agency Reuters, Nissan and Renault will hold off on the merger to instead focus on repairing their alliance, with the brands set to make a joint-announcement later today.

The two car makers formed their alliance back in 1999 to share technologies and development costs, with Mitsubishi joining in 2017.

Above: Nissan CEO Makoto Uchida

However, according to Reuters' sources, the alliance has been tainted by what a Nissan insider said is a lack of contribution by Renault.

“Nissan engineers on average produced 40 per cent more than their Renault counterparts in a given amount of time spent on a job,” the insider told Reuters earlier in the year.

Further to the announcement, Nissan and Renault will release their own mid-term restructuring plans in the coming days.

Declining sales during COVID-19 have forced each brand to reassess their structure and place within the alliance.

Last week, France’s finance minister Bruno Le Maire said Renault’s future hinges on the success of a government bail out.

In March, the future of the alliance’s venture fund – that sees Nissan, Renault and Mitsubishi invest to co-develop technologies – came under threat.