Nissan pressures Renault to reduce its stake-WSJ | Photo credits: Chris Warham / Shutterstock.com
Oct 8 (Reuters) – Nissan Motor Co Ltd is pressuring partner Renault SA to reduce its stake in the Japanese automaker and revamp their more than 20-year-old alliance, the Wall Street Journal reported, citing sources familiar with the matter.
French automaker Renault owns about 43% of Nissan, while the Japanese firm owns 15% of its largest shareholder, but without voting rights.
In June, Nissan revealed for the first time certain details of this alliance pact, which prevents Renault from unilaterally increasing its stake in Nissan’s capital beyond 44.4%.
Nissan would have taken advantage of the discussions that are taking place at the moment on Renault’s project to create within it an entity dedicated to electricity to ask the French manufacturer to reduce the stake it holds in its capital, according to the Wall Street Journal .
Renault wants to split electric vehicle and combustion engine businesses to catch up in the electric field against rivals such as Tesla and Volkswagen.
Nissan has not yet said how it intends to support this project. Its chief operating officer, Ashwani Gupta, traveled to France last month with other company executives to discuss it, says the Wall Street Journal.
Renault plans to unveil a detailed plan for this new entity this fall.
The French manufacturer declined to comment on the article. Nissan was not immediately available to answer questions from Reuters. (Report by Rhea Binoy in Bangalore, French version Caroline Pailliez)