Nissan has so far been unable to find a partner to address its difficulties, after negotiations with Honda failed, the Japanese company believes its relationship with Renault has become more strained.
Both companies announced a reduction in their respective equity stakes from 15% to a minimum of 10%.
The new agreement is part of a series of adjustments made in recent years to reduce their mutual dependence, particularly after the restructuring of the alliance in February 2023, the goal is to ease tensions between the two parties.
The new agreement provides more flexibility for Nissan, which is facing financial difficulties, while allowing Renault to refine its strategy. The French company still owns 36% of Nissan shares, thus retaining significant influence over its Japanese ally.
“As Nissan’s long-term partner in the alliance and its largest shareholder, Groupe Renault has a strong interest in seeing Nissan recover as quickly as possible,” said Groupe Renault CEO Luca de Meo in a statement.
As part of the new reorganization, Renault will acquire Nissan’s 51% stake in their joint venture in India, Renault Nissan Automotive India, increasing its ownership to 100%. The acquisition will also sell a stake in the Chennai plant, allowing Renault to strengthen its presence in India.
The new updated framework agreement stipulates that Nissan will waive its €600 million commitment to Ampere, Renault’s electric subsidiary. Despite this withdrawal, Ampere will continue to develop an electric model designed by Nissan and based on the Renault Twingo.
New CEO Ivan Espinosa will take over Nissan this April, and will seek to create a more flexible and efficient business model that allows Nissan to respond quickly to changing market conditions and preserve liquidity for future investments, according to a statement by the new CEO.
