The French government has indicated there is room for potential tweaks to the ownership balance in the carmaking alliance between Renault and Nissan, an option President Emmanuel Macron had ruled out in June.
France owns the biggest stake in Renault, while the cross-shareholdings between the automaking partners favor the French side.
Speaking in an interview on French radio, Martin Vial, the head of France's state shareholding agency, did not reject the idea of possible modifications of the ties between the companies or a potential cut to France's ownership in Renault, so long as such a move created value for France.
Vial said changes might be possible if there is value creation for the state. Better cooperation between the companies must come first, however.
Reinforcing joint projects "is the top priority. That's what -- I believe -- the two managements of both groups are striving for. For the rest, if there is value creation, why not," Vial on Friday told Radio Classique.
"But first, the priority is synergies and industrial cooperation."
The comments could be a sign of softening in a struggle that's been deadlocked for weeks.
Renault's efforts to forge deeper ties with Nissan have been met with resistance, while its attempt to merge with Fiat Chrysler Automobiles was called off after its Japanese partner failed to sign on.
Nissan has long sought to equalize the cross-shareholdings and lower the influence of the French government on the alliance.
A spokeswoman for the agency said new industrial projects were central to the alliance, which has experienced huge strains since the November arrest of former Chairman Carlos Ghosn.
France has no specific plan for changing the crossed shareholdings between Renault and Nissan or for the government's stake in the French automaker, she said, adding the state was always open to considering proposals that would increase the value of France's holding.
Renault owns a 43 percent share in Nissan, while Nissan holds a 15 percent stake as part of a two-decades old pact.
President Macron in June said that "nothing justifies" changing the current structure between the companies.
Since then, the partners have weighed Renault reducing its stake in the Japanese automaker, the Wall Street Journal reported, citing internal emails as well as people briefed on the talks.
Any reduction of the stake would need approval from France, which owns 15 percent of Renault.
The French government sits at a key juncture as the increasingly abrasive partners search for a way forward.
Merger talks between Fiat and Renault collapsed in June, after France sought more time to convince counterparts at Nissan, prompting Fiat's controlling Agnelli family to walk away from the deal.
Fiat and Renault have not resumed talks to combine "to my knowledge," Vial said. "These tie-ups make of course a lot of sense but can't be done against the first historic partner of Renault, which is Nissan."
Early-stage talks to modify the alliance's structure began after the Renault-Fiat deal collapsed, the WSJ reported. They could lead to an initial memorandum of understanding on the restructuring as soon as September, the newspaper said.
