Renault-Nissan Shareholding Restructured: "Equal Partnership After 24 Years"

Renault to Reduce Nissan Stake to 15%
Rising Expectations for Electric Vehicle Business Collaboration

[Asia Economy Reporter Minwoo Lee] Japanese automaker Nissan and French Renault have agreed to equalize their shareholding ratios for the first time in 24 years. This is expected to quell the noise caused by the difference in shareholding ratios and enable more efficient collaboration.

According to local media such as Kyodo News and NHK, the three alliance partners Nissan, Renault, and Mitsubishi held a press conference in London, UK, on the 6th (local time) to announce this agreement.

Accordingly, Renault will reduce its 43.4% stake in Nissan to Nissan's 15% stake in Renault. At the same time, Nissan will invest up to 15% in Ampere, an electric vehicle company established by Renault. Mitsubishi Motors, in which Nissan holds a 34% stake, is also planning to consider participating in Ampere.

Renault plans to entrust its 28.4% stake in Nissan to a French trust company and gradually sell it off in the future. The two companies had planned to complete the shareholding arrangement by last fall, but negotiations stalled for some time due to disagreements over the handling of jointly developed intellectual property rights.

Jean-Dominique Senard, Chairman of Renault's Board, said, "We have been waiting for this moment for a long time," adding, "This alliance will strengthen common platforms and parts, and as the companies' shareholdings become balanced, we will enter a new era of collaboration." Makoto Uchida, President of Nissan, also said, "An equal relationship enables transformation," and expressed confidence that "the new system will deepen mutual trust and accelerate our shared ambitions for the future of the automotive industry."

The Renault-Nissan alliance began when Renault acquired a stake in Nissan, which was in a management crisis, in 1999. Since then, Mitsubishi has also joined the alliance, making it a successful collaboration case in the industry. However, in 2018, noise erupted when former Renault-Nissan Chairman Carlos Ghosn was arrested in Japan on charges of financial misconduct. Ghosn drew public outrage for his internal power grabs at Nissan and various extravagances.

NHK analyzed that through this agreement, the Nissan-Renault-Mitsubishi alliance will strengthen regional strategies and electric vehicle businesses. It also diagnosed that the challenge is for Nissan, having secured independence from Renault, to establish effective business strategies.