Nissan, Renault Agree To Overhaul Their Global Alliance

Nissan Motor Co and Renault SA agreed on Monday (Jan 30) to restructure their two-decade-old automaking alliance, putting them on equal footing and allowing Nissan to invest in Renault's new electric vehicle business. The announcement came after nearly four months of intense negotiations, which sources told Reuters were complicated by concerns about intellectual property sharing as Renault sought to form a number of new alliances.

Renault will reduce its stake in Nissan to 15% from around 43% under the agreement, transferring the 28% stake in the Japanese automaker to a French trust, according to Renault.
Renault would then instruct the trustee to sell those shares, which are worth approximately US$4.1 billion (RM17.4 Bil) at current market values, in a coordinated and orderly process if commercially reasonable for the French automaker, it added.

Nissan also announced plans to invest in Renault's new battery-electric vehicle division.
Renault shares have gained nearly 25% since the two automakers announced they were in talks to restructure their alliance in early October, while Nissan shares have gained only 3%.

The future shape of the Franco-Japanese alliance has implications for both companies as well as Mitsubishi Motors Corp., their junior partner. It also emphasises how the auto industry's massive technological upheaval is forcing companies to collaborate and compete with an increasing number of newcomers and tech firms.

Renault, for example, has stated that it will collaborate with companies ranging from China's Geely Automobile Holdings to semiconductor giant Qualcomm Inc. According to Reuters, the French company is working separately to finalise a deal with Geely and to bring Saudi Arabian state oil producer Aramco in as an investor and partner to develop gasoline engines and hybrid technologies.