The Renault and Nissan line-up is going to get a major shuffle with the two car manufacturers rebalancing their capital ties while working on a number of new projects.
Executives from both companies agreed in an operating board meeting to equalize their cross-shareholdings and will hold an event on February 6 to present their plans. The deal will see Renault reduce its lop-sided 43 per cent stake in Nissan to 15 per cent through a disposal of stock over time. This would make things even as Nissan currently owns a 15 per cent stake of Renault.
It is understood that the French government, Renault’s most significant shareholder, has agreed to the reorganization as long as the two automakers continue to collaborate on a number of industrial projects.
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Initial plans call for Renault, Nissan and Mitsubishi Motors to embark on five projects. One of these projects will relate to commercial vehicles, one will have a focus on the Indian market, and another will trigger a closer collaboration in Latin America. Bloomberg reports that Renault has proposed work on 10 common projects.
Strengthening ties within the Alliance comes at a particularly transformative time in the automotive industry. Not only are most car manufacturers transitioning to electric vehicles but they are also working more closely with other carmakers, suppliers, and technology firms. Thus, it’s important for Renault and Nissan to make the most of their synergies.
Through the rebalancing, it is understood that Renault chief executive Luca de Meo will be able to move forward with his plan to split the French carmaker into five separate businesses. This will include an electric vehicle and software unit dubbed Ampere. Reports state that Renault also wants to strengthen ties with the likes of Zhejiang Geely Holding and Qualcomm, while Nissan is expected to invest in Ampere.
