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Home » Renault and Nissan Revamp Long-Standing Partnership

Renault and Nissan Revamp Long-Standing Partnership

06 February 2023, Monday
Nissan and Renault have provided the specifics of a substantial reorganization of their alliance that has had a history of tension for 24 years.
After numerous negotiations between the two vehicle manufacturers, they made a joint statement that their relationship has been adjusted, with Renault agreeing to decrease its investment in Nissan.

Nissan and Renault have reached a deal that will see the Japanese carmaker take a stake in the French automaker's electric car unit, Ampere. The agreement will also involve collaboration on the development of electronic and battery technology, as well as cost savings from joint projects in Europe, India, and Latin America. As a result of this new partnership, Renault will reduce its ownership of Nissan from 43% to 15%, which is the same percentage as Nissan's stake in its French counterpart.

The partnership between Renault and Nissan, which has lasted for two decades, may be saved with their newly announced changes. Nissan will take a 15% stake in Renault's newly established electric vehicle venture, Ampere. According to Christopher Richter from CLSA, an investment group, these changes are essential in order to keep the alliance going. He said, "It's a last ditch attempt to save an alliance where the two partners don't get along very well."

Mr Richter suggested that, by levelling the playing field between them in the alliance, the two companies could potentially put the animosity that has been brewing behind them and find ways to collaborate that would be of mutual benefit. 

This comes at a critical juncture for the motor industry, which is undergoing a huge transformation with the shift to electric vehicles and the incorporation of advanced technology.

According to Seijiro Takeshita from the University of Shizuoka in Japan, it is expected that the auto industry is set to amalgamate into five or six global players, primarily due to the increasing prevalence of artificial intelligence.

Renault and Nissan, two carmakers working together in an alliance, need to find a right partner in order to remain competitive in the automobile market, according to an industry expert. "In that context, Nissan and Renault need to identify an appropriate ally, and that's what they are, at least nominally," he mentioned.

The two companies first came together in 1999 with Renault lending a helping hand to Nissan who was facing bankruptcy at the time. Mitsubishi joined the alliance in 2016 when Nissan acquired a major stake in the troubled Japanese company.

In November 2018, the alliance between Nissan, Renault and Mitsubishi was shaken when the Nissan boss Carlos Ghosn was arrested due to claims that he had underreported his yearly salary and had misused business funds, to which he declared his innocence. At the moment, Mr Ghosn was the chairman of the Japanese carmaker, as well as the chairman of Renault and the leader of the three-way alliance between the companies.
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