Monitoring Desk
ISLAMABAD/TOKYO: Renault SA and Nissan Motor agreed on Monday to the sweeping revamp of their two-decade-old automaking alliance that could put them on equal footing and sees the Japanese company invest in Renault’s new electric vehicle business.
According to Reuters, the announcement came after four months of intense talks that were complicated by concerns about the sharing of intellectual property as Renault sought to build several new tie-ups with companies outside their companies’ alliance.
Renault stance
Renault said that under a deal, which is subject to board approvals, Renault could reduce its stake in Nissan to 15 percent from around 43 percent, transferring around 28 percent of the Japanese automaker to a French trust.
Crucially, that could make the companies equal partners. Their unequal ties had long been a source of friction among Nissan executives. Renault has bailed out Nissan two decades ago, it is a far smaller automaker by sales.
Their alliance, which also includes partner, Mitsubishi Motors Corp was deeply strained by the ouster of its architect, former Chairman Carlos Ghosn, amid a financial scandal.
The pair could now have a 15 percent cross-shareholding that could allow Nissan to exercise its voting rights, which it was unable to do previously.
