by Potential Resumption of Cooperation Between Nissan and Renault
Automakers Nissan and Renault may strengthen their relationship and alliance several months after Luca de Meo stepped down as CEO of Renault in mid-July. Given the financial difficulties faced by the Japanese brand, it is not surprising that it is interested in strengthening the partnership.
Key Points of the Deal
Alliance Restructuring
The last major restructuring of the alliance occurred in 2023, when Renault agreed to reduce its stake in Nissan from approximately 43 percent to just 10 percent. The French automaker planned to reinvest the funds from the sale of part of its Nissan shares to finance its own growth.
New Leaders and Changes in Plans
However, due to the drop in Nissan’s share price, de Meo’s plans were not fully realized. Currently, Renault owns almost 36 percent of Nissan, including 18.7 percent held in a French trust. Earlier this year, Renault had to write down 9.5 billion euros of its stake in Nissan.
Position of Renault’s New Leadership
According to reports, Renault’s new leader, François Provost, is interested in strengthening existing alliances, emphasizing that partnerships are crucial for a company of Renault’s scale. A representative confirmed that Provost frequently communicates with Nissan’s new leader, Ivan Espinosa, discussing how the two automakers can collaborate more effectively.
“Twenty years with Nissan have taught us… that we have the ability not only to negotiate partnerships but also to implement them for the benefit of Renault. This is how we address the issue of scale,” Provost noted at a recent event in Paris.
Prospects for Future Projects
Provost previously headed the partnerships division at Renault and was described as a “partnerships person” by one company insider. According to another source, several joint projects are planned between Nissan and Renault, with Nissan particularly interested in jointly producing more vehicles.
Nissan’s Openness to New Deals
Ivan Espinosa, who was appointed President and CEO of Nissan in April and tasked with leading the company out of crisis, has also expressed openness to deepening partnerships. He recently reported that Nissan is negotiating with Honda regarding the joint development of new models in the United States, despite the potential merger between Honda and Nissan falling apart earlier this year.
Regarding the future of the alliance, it is worth noting that leadership changes in both companies could be a key factor in restoring trust and the effectiveness of cooperation. Renault’s financial losses and Nissan’s current difficulties underscore the need for swift and balanced decisions. Joint projects, such as the development of new models or optimization of production capacities, could ensure the sustainability of both brands in a competitive environment.
