Renault and Nissan are reviewing their collaboration, with a rebalancing of their capital relationship but also a relaunch of their joint industrial projects (AFP/Archives/Kazuhiro NOGI)
A “new spirit”, less fusional and more egalitarian: the Renault-Nissan Alliance is setting out again on “rebalanced” bases and new industrial projects, in electricity and in new countries, after 24 years of marriage and rumors of divorce.
While Renault owned 43.4% of Nissan, the companies will strike a new 15-year deal under which they will have a “15% cross-shareholding”, their bosses announced at a press conference in London on Monday.
Renault, Nissan and Mitsubishi, which joined the alliance in 2016, negotiated the details of this agreement for many months, validated Sunday evening by Renault’s board of directors, and Monday morning by that of Nissan. It should be effective before the end of 2023.
It is the end of a long French domination, which began in 1999 with the entry of Renault into the capital of Nissan.
The relationship had been complicated by the surprise rise of the French state to the capital of Renault, in 2015, then by the spectacular fall of Carlos Ghosn, then boss of the alliance, and arrested at the end of 2018 in Japan for accusations of financial embezzlement. .
Discussions stumbled particularly around the question of Nissan’s technological patents, according to sources close to the alliance.
– “Return of confidence” –
Nissan boss Makoto Uchida during a press conference in London on February 6, 2023 (AFP/Daniel LEAL)
Nissan boss Makoto Uchida stressed on Monday that this rebalancing was necessary to rebuild “a culture of transparency and respect” between manufacturers.
“Based on this agreement, there is the reactivation of commercial and industrial initiatives initiated with the Alliance,” said Renault CEO Luca de Meo.
“We will be consistent, results-oriented, generous and fair, as we have been during these negotiations,” he assured Mr. Uchida.
The Japanese press, like the daily Manichi, welcomed Monday the end of “unequal treaties”, an expression referring to the treaties imposed on Japan by Western powers in the 19th century and which disadvantaged Tokyo.
The French group will wait before selling the rest of its Nissan shares (28.4%), because they are now worth much less than originally and than what is recorded in its accounts. Renault will continue to receive the dividends.
– Less ambitious –
Renault President Jean-Dominique Senard during a press conference in London on February 6, 2023 (AFP/Daniel LEAL)
As part of this alliance with 375,000 employees, Renault, Nissan and Mitsubishi are already collaborating on many vehicles, with savings at stake.
Renaults and Nissans share the same engines, and Renaults are sold under the Mitsubishi badge.
The new deal comes with big ambitions in the Indian and South American markets, which could bring them “hundreds of millions of euros, or billions every year”, Mr De Meo said.
Nissan, which has a factory in India, will market “new SUVs” there, including a derivative of the small Dacia Spring.
In Mexico, where Nissan is one of the market leaders, the Japanese manufacturer will produce a Renault in its plant. In Argentina, Renault will launch new pickups for Nissan.
The manufacturers also plan to launch in these markets, where their margin of progress remains enormous, two small common electric vehicles.
If there were no surprises on the governance side, “everyone welcomes the pragmatism of these announcements”, underlined analyst Michael Foundoukidis, of the firm Oddo BHF. “These are not very dazzling projects, but rather simple to implement. We are starting on a less ambitious basis than a few years ago”.
“The objective was to try to convince that governance issues have been addressed. It will take time,” continued the analyst. “The opinion of investors on the Alliance is relatively negative, it can only get better”.
Nissan shares were up slightly on Monday at the close of the Tokyo Stock Exchange, while Renault shares fell slightly in Paris.
After this long period of unrest, the Japanese groups have yet to specify their involvement in Renault’s major projects: Nissan indicated on Monday that it was going to buy up to 15% of the shares of Ampere, the future electric subsidiary of Losange, while that Mitsubishi has announced its intention to join.
© 2023 AFP
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