Automotive: Renault and Nissan revise the terms of their alliance downwards

The French manufacturer and the Japanese are reviewing the terms of their alliance.

Here, the Renault and Nissan brand logos.

AFP/File

Text by: RFI Follow

1 min

Renault will reduce its share in the capital of the Japanese Nissan to 15%, against 43% currently.

The two car manufacturers communicated several key points this Monday, January 30, specifying the balance of the new building.

The main information has been confirmed: now, the two partners are equal.

Advertising

Read more

This is a major overhaul of the marriage conditions between the two automotive groups.

Since the beginning of their union in 1999, they had experienced good times, but also serious crises of confidence.

Each will hold 15% of the capital of the other.

This is the end of Renault's financial domination since the diamond brand has held 43% of the Japanese group since the establishment of this extraordinary partnership on the eve of the 2000s. This merger has enabled Nissan to recover its health. with the financial support of the French brand.

The fall of Carlos Ghosn breaks confidence

The exchange of technologies and joint projects turn them into an automobile giant.

But

, the initiator of the alliance, will break confidence and freeze projects.

With this rebalancing, divorce has been narrowly avoided, everyone regains their autonomy in a revisited alliance.

Nissan confirmed this morning that it would take a stake in Ampère, Renault's electrical division.

As competition intensifies in an uncertain economic climate, the partnership remains legitimate and useful, with key programs in prospect in India, Latin America and Europe.

Financially, Renault has the freedom to sell its Nissan shares at its own pace in order to avoid an excessive depreciation of its assets.

►Also read: Renault, Nissan and Mitsubishi consolidate their alliance thanks to the electric

Newsletter

Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

• France

• Japan

• Automotive