Nissan, Renault Revamp Alliance; Agree on Equal Partnership
Nissan Motor and Renault SA agreed to reshape their 20-plus-years-old alliance, putting them on the same ground and allowing the Japanese automaker to invest in the French company EVs division.
Both companies have accepted as a basic framework that Renault will lower its stake in the Japanese company to 15% from the previous 43%, which is equal to the participation Nissan has in the French automaker. This means that Nissan will now be able to exercise its voting rights thanks to the same 15% cross-shareholding position.
The joint decision was made after several months of negotiations between both car makers. The agreement seeks to boost the ties of the alliance and maximize value creation for stakeholders through a three-step plan: reloading the partnership with high-value creation operational projects, enhancing strategic agility with new initiatives that partners can join and a balanced governance and cross-shareholding to foster accelerated operational efficiencies, says Nissan Motor.
The new deal seeks to boost Nissan’s participation in Renault’s EVs division, as both companies aim to increase their investment in Latin America, the EU and India, according to Reuters. This decision will likely influence the future of the automotive industry, as the sector is constantly changing thanks to electromobility trends and the entrance of more tech companies into the market.
The Renault-Nissan-Mitsubishi Alliance started in 1999. Since then, it has become the third largest player in the global automotive industry with over 375,000 employees worldwide. “For 22 years, we have been building on our respective cultures and strengths for our common benefit. Today the Alliance is accelerating the pace to lead the mobility revolution and deliver more value to customers, our people, our shareholders and all our stakeholders,” says Jean-Dominique Senard, Chairman of the Alliance.
According to Senard, the alliance is planning massive investments that none of the companies could make on their own, planning to invest US$23 billion in electrification within the next five years and introducing 35 new EV models by 2030. The three companies agreed to a shared roadmap towards 2030, as they aim to become carbon neutral by 2050.
The Mexican subsidiary of Nissan Motor announced the second model with its new electric motorization, the new Nissan X-Trail e-POWER. With this, Nissan Mexicana wants to “continue to redefine the future of electric mobility,” as reported by MBN.
“These are transformative times for the automotive industry and a new era of Nissan Mexicana starts with the arrival of Nissan Kicks e-POWER. With this technology, we reaffirm, once again, our commitment to democratizing electric vehicles and offering a new era in the driving experience,” says José Román, President and Director General, Nissan Mexicana and NIBU.