Currently reading: Renault to reduce Nissan stake following crunch talks

Proposed changes will give each company equal voting rights in the other, subject to board approval

The Renault Group will significantly reduce its stake in Nissan as part of a historic reshaping of the firms’ Alliance.

Key to the new terms of the Alliance is equity of control over the other firm: each will retain a 15% shareholding in the other, with voting rights capped in kind.

Renault, which holds a 43% stake in Nissan, will transfer 28.4% of those shares to a French trust with “neutralised'' voting rights on most decisions. However, Renault will retain the economic rights – for example its share of dividends – attached to that 28.4%.

The French company will instruct the trust to sell those shares if “commercially reasonable” and “in a co-ordinated and orderly process” but isn't obligated to do so within any set period of time.

In turn, Nissan will buy a stake of up to 15% in Ampere, the Renault Group’s electric vehicle division, established in November 2022.

By 2030, the new arm will have six EVs on sale, including the Renault Mégane E-Tech Electric, new Renault 4, new Renault 5 and Renault Scenic Electric.

Renault 4 concept paris motor show 01 front static

Citing a source said to be familiar with the matter, Bloomberg previously reported that Nissan’s investment in Ampere will range from $500 million to $750m (£450m to £680m).

Renault and Nissan will continue to use the Alliance Operating Board as its coordinating forum.

Both companies will also establish several new value-creation projects in markets, vehicles and technologies in Europe, Latin America and India.

The agreements are yet to be finalised and are still subject to the approval of each firm’s board.

Should they be approved, they will end months of crunch talks originally reported by the Financial Times to have been sparked by an intellectual property dispute.

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This concerned the formation of the Horse Project, a joint venture between Renault and Chinese firm Geely to develop combustion engines, resisted by Nissan in a bid to protect its intellectual property.

The proposed changes in the Alliance’s control structure are the most significant since Carlos Ghosn – its former chairman – was arrested in 2018.

Renault's stake has been a source of tension since it rescued Nissan from financial turmoil in 1999, with the situation complicated by the French state’s 15% ownership of Renault.

This development doesn't appear to have any affect on Mitsubishi, the third partner in the Alliance.

Charlie Martin

Charlie Martin Autocar
Title: Editorial assistant, Autocar

As part of Autocar’s news desk, Charlie plays a key role in the title’s coverage of new car launches and industry events. He’s also a regular contributor to its social media channels, providing videos for Instagram, Tiktok, Facebook and Twitter.

Charlie joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication What Car?, during which he acquired his gold-standard NCTJ diploma with the Press Association.

Charlie is the proud owner of a Fiat Panda 100HP, which he swears to be the best car in the world. Until it breaks.

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