Automakers Renault and Nissan have agreed to restructure their longstanding partnership, and the French company has reduced its stake in the Japanese company to 15%.
Under the agreement, Renault will transfer a 28.4% stake in the Yokohama-based company to a French trust. Nissan said in a statement that the voting rights of its shares would be “neutralized” in most decisions, but Renault will continue to enjoy economic benefits from its shares unless the shares are sold.
Renault (RNLSY) and Nissan (NSANF) will hold 15% stakes in each other’s businesses through cross-shareholding agreements with voting rights. Previously, Nissan (NSANF) held his 15% stake in the French company’s non-voting shares, while Renault (RNLSY) owned about 43% of Nissan (NSANF).
The move marks an important milestone in the 24-year-old Automotive Alliance.
Since 1999, both automakers have worked together with junior partner Mitsubishi Motors (MSBHY). Collaborations typically allowed companies to share production and technology, ultimately saving billions of dollars annually.
But the group’s future has been called into question in recent years, especially after the shock fallout of former CEO Carlos Ghosn. 2018.
Ghosn, who ran three automakers, was arrested in Japan and prosecutors charged him with financial crimes. He fled Japan in 2019, believing he never got a fair trial.
he He has pleaded not guilty and is currently in Lebanon. where is he remain a fugitive. France, where he holds citizenship, issued an arrest warrant for him last spring.
The scandal sparked speculation that the alliance might break up. But in 2020, the two companies brushed off such chatter.
Most recently, Renault and Nissan revealed they were rethinking the nature of their relationship. Last October, the companies said they were “having credible discussions” about the future of the partnership.
Nissan said in a statement on Monday that the two companies will continue to work together on projects in Europe, India and Latin America.
The Japanese automaker will also invest in Ampere, Renault’s recently established electric vehicle and software business, the company added.