The alliance between Nissan and Renault is worthy of a movie. Although all alliances between large companies may have their particularities, what happened between these two manufacturers reached incredible levels thanks to Carlos Ghosnwho in his journey as an executive that was not very transparent, put the courts of several countries on alert until he reached his arrest, release on bail, and life on the run in Lebanon, with a story that ended up in a documentary.
But let’s get back to business. Until now, the Renault Group has had a 43.4% stake in Nissan, which gave it a greater participation in the decisions of the Japanese manufacturer. The disparity between the holdings was a source of friction, especially after Nissan became much more profitable than Renault.
That’s why now it was decided that Renault will transfer shares equivalent to a 28.4% stake in Nissan to a French trust so that each party has the same 15% stake in the other, as reported by the companies today. It is worth clarifying that the agreement on the change in shareholdings still needs the approval of the board of both companies, although the brands have already officially communicated it to the press.
The companies stated that the shares of the French trust may eventually be sold, but they did not say to whom or how. They said the sale will take place in a “coordinated and orderly process” if the deal makes commercial sense for Groupe Renault, and there is no deadline for doing so. Until then, voting rights would be neutralized for most management decisions, but dividends will continue to go to Renault as they have been.
It should be remembered that Renault’s main shareholder is the French state. A precedent for this decision could have occurred in early January, when Japanese Prime Minister Fumio Kishida met with French President Emmanuel Macron.
The alliance also includes the automaker Mitsubishi Motor Corp, although it was not reported how the participation of the brand with the three diamonds will be. Similarly, the size and turnover of Mitsubishi does not compare with that of Nissan or Renault.
As part of the agreement, it was established that Nissan invest in Ampere, an electric vehicle and software company founded by Renault. The companies will also work together on marketing, vehicles and technology in Latin America, India and Europe, they said.
Will this new horizontality be what the alliance needs to face the challenges of the transition to electric mobility? That will remain to be seen, the brands want to put the Ghosn case in the past and push each other smoothly.
