Renault will reduce its participation in Nissan: is it the beginning of the end of its Alliance?

La Reuters agency has recently reported that, based on his sources within the French automaker, Renault will review the terms of its industrial alliance with the Japanese Nissan with the aim of reducing their participation in it. The two companies have been strategic partners since 1999, but they did not consolidate a broader association until 2017. According to the British media, the changes in the agreement that they still maintain will be made public soon.

Everything points to the Groupe Renault will withdraw a large part of its shareholding weight in Nissan in 2023. Currently, the French company owns about half of the property of the Japanese (43,5%). However, Nissan only owns 15% of Renault. The divergence and asymmetry in the control of both companies had been causing a feeling of grievance in Japan for several years. It added to the tensions produced by the corruption case of Carlos Ghosn, former president of Nissan, and the financial crisis that this brand is still suffering.

That is why, coinciding with the 1 Formula 2022 Grand Prix in the Asian country, Luca de Meo, CEO of Renault, met with his Nissan counterpart, Makoto Uchida. There they would have reached an agreement by which Renault would have 15% of the shares of Nissan, exactly the same amount that Nissan has from Renault, among others. convenience settings. An example is the fact that entities outside the Alliance accessed privileged information.

Rumors of rethinking the Alliance and even disbanding it had been very lively since last fall, but it seems that the Europeans managed to convince the Easterners (and vice versa) of their dependence in a scenario as new and uncertain in the sector as the current one. With the Chinese Geely now involved and as a key provider of technology for cars, Renault intends to continue developing hybrid and electric products with Nissan that can then continue to separate and differentiate commercially.

understanding that this is a excellent opportunity to strengthen yourself in the global market, the demands and the initial dissatisfaction of Nissan with the current terms of the Alliance have ended up giving it a second chance to an association that, apparently, still has fruit to bear. Reuters anticipates that the full announcement by the two companies will be released throughout the first week of February.

Source - Reuters