Renault had been planning to use funds from selling off its Nissan stake to fund its own growth
by Brad Anderson
54 minutes ago
- Renault had agreed to cut its Nissan stake down to just 10 percent.
- The French automaker currently holds nearly 36 percent of Nissan.
- Both Nissan and Renault CEOs appear open to fresh collaboration.
Nissan and Renault may look to strengthen their fractured relationship and alliance, several months after Luca de Meo resigned as Renault chief executive in mid-July. Given the current financial turmoil that the Japanese brand is in, it perhaps comes as no surprise that it’s eager to firm up the alliance.
The last major restructuring of the alliance came in 2023 when Renault agreed to reduce its stake in Nissan from as much as 43 percent to just 10 percent. The French automaker had planned to reinvest the funds from selling down its Nissan holdings to fund its own growth.
New CEOs, New Plans
However, due to Nissan’s falling share price, things haven’t worked out quite as de Meo had hoped. Renault currently still owns almost 36 percent of Nissan, including 18.7 percent in a French trust. Earlier this year, Renault had to write off €9.5 billion ($10.9 billion) of its stake in Nissan.
Read: Nissan Backs Out Of $649M Renault EV Deal And Gets A Custom Twingo Instead
According to the Financial Times, Renault’s new chief, François Provost, is keen to reinforce existing alliances, stressing that partnerships are vital for a company of Renault’s scale. A spokesperson confirmed that Provost has been in frequent contact with Nissan’s new boss, Ivan Espinosa, discussing how the two automakers might cooperate more effectively.
“Twenty years with Nissan have taught us… that we have the ability not only to negotiate partnerships but above all to execute them to Renault’s advantage. That’s how we address the topic of scale,” Provost said at a recent event in Paris.
More Partnerships Coming?
Provost was previously the head of Renault’s partnerships and has been described “a partnership man” by one company insider. Another source has added that several projects between Nissan and Renault are on the cards, with Nissan said to be particularly eager to jointly manufacture more vehicles.
Ivan Espinosa, who was appointed president and chief executive of Nissan in April and tasked with turning the company around, has also expressed openness to deepening partnerships.
Recently, he revealed that Nissan is in talks with Honda to jointly develop new models in the United States. This comes despite the potential merger between Honda and Nissan falling apart earlier this year.
Source: Financial Times
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