Automotive
Nissan And Renault Work Things Out
Rome was not built in a day, but 4 months to reach a “we should both get an equal vote” agreement in a partnership is a little surprising. What changes do you see heading for dealers based on Nissan’s newfound freedom?
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Nissan and Renault's 24-year alliance is safe...for now. The deal took 4 months of intense talks, but both companies feel that they have reached a necessary balance.
- Renault's stake in Nissan will drop from 43% to 15%.
- The excess stake of 28% will be placed in a French trust to sell for around $4.1B.
- With 15% cross-shareholding, Nissan gained a vote on alliance matters and a free hand for a long-term strategy in the US, China, and other markets.
- Part of the deal requires both parties to pool more resources into Latin American, Indian, and European projects.
- Nissan will invest in Renault's BEV unit.
- Renault will partner with Chinese groups, such as EV maker Geely and semiconductor giant Qualcomm.
Both Renault and Nissan experienced a bump in share value following the announcement. Renault saw a 25% jump, while Nissan rose just 3%.
