The alliance between Renault and Nissan has been very beneficial to both companies and it’s no secret the CEO of the French-Japanese duo, Carlos Ghosn, is looking for a tie-up with a third partner. We can report that French rival PSA/Peugeot-Citroen is unlikely to be that partner, despite a recent report in the Financial Times that said otherwise.

Ghosn is against the idea, claiming a merger of France’s two biggest carmakers would “create a jobs bloodbath" because of the synergies that could be gained. Officials from PSA/Peugeot-Citroen have also dismissed the idea, reports Automotive News.

Some experts see such a move as being positive to the French auto industry as it would help build a force strong enough to compete with similar car-consortiums such as Volkswagen and Fiat. Ghosn, however, would rather see an alliance formed with one of America’s three major carmakers and was even in talks with both GM and Ford late last year. However, all negotiations have since come to a stop. There have been rumors that newly independent Chrysler may consider a tie-up with Renault-Nissan as it would bring small car expertise and reduce costs due to better economies of scale.