New agreement, new start for Renault and Nissan

Spread the love

New agreement, new start for Renault and Nissan

The Renault-Nissan Alliance is starting again on a “rebalanced” basis and new industrial projects, particularly electrical, and in new countries. (Archival photo)

A “new spirit”, less fusion and more egalitarian: the Renault-Nissan Alliance is starting on a “rebalanced” basis and new industrial projects , in the electric and in new countries, after 24 years of marriage and rumors of divorce.

While Renault owned 43.4% of Nissan, the companies will strike a new 15-year deal under which they will have a 15% cross-shareholding, their bosses announced at a press conference in London on Monday. /p>

Renault, Nissan and Mitsubishi, which joined the alliance in 2016, negotiated the details of this agreement for many months, validated on Sunday evening by the board of directors. administration of Renault, and Monday morning by that of Nissan. It is expected to enter into force before the end of 2023.

It was the end of a long French domination, which began in 1999 with the entry of Renault into the capital of Nissan.

The relationship had been complicated by the surprise rise of the French state to the capital of Renault, in 2015, then by the spectacular fall of Carlos Ghosn, then boss of the alliance, and arrested at the end of 2018 in Japan for accusations of financial embezzlement. /p>

Ex-Renault-Nissan CEO Carlos Ghosn, who claimed to have fled Japan to avoid a plot against him by the manufacturer Nissan. He was arrested in 2018. (File photo)

Discussions were particularly stumbling over the issue of Nissan's technology patents, according to sources close to the alliance.

Nissan boss Makoto Uchida stressed on Monday that this rebalancing was necessary to rebuild a culture of transparency and respect between manufacturers.

According to Nissan boss Makoto Uchida, the agreement was necessary to rebalance forces. (File photo)

The basis of this agreement is the reactivation of the commercial and industrial initiatives launched with the Alliance, underlined Renault CEO Luca de Meo.

We We will be consistent, results-oriented, generous and fair, as we have been during these negotiations, he assured Mr. Uchida.

The Japanese press , like the daily Mainichi, welcomed on Monday the end of the unequal treaties, an expression referring to the treaties imposed on Japan by Western powers in the 19th century and which disadvantaged Tokyo.

The French group will wait before to sell the rest of his Nissan shares (28.4%) because they are worth much less today than they were originally and what is recorded in his accounts. Renault will continue to receive the dividends.

As part of this alliance with 375,000 employees, Renault, Nissan and Mitsubishi are already collaborating on many vehicles, with savings to the key.

Renaults and Nissans share engines, and Renaults are sold under the Mitsubishi brand.

The new agreement comes with big ambitions on the Indian and South American markets, which could bring them hundreds of millions or billions of euros each year, launched Mr. de Meo.

Nissan, who a factory in India, will market new SUVs there, including a derivative of the small Dacia Spring.

In Mexico, where Nissan is one of the market leaders, the Japanese manufacturer will manufacture a Renault in its factory. In Argentina, Renault will launch new pickups for Nissan.

Nissan will produce a Renault car in Mexico following the conclusion of the new agreement. (File photo)

Manufacturers also plan to launch in these markets, where their margin of progress remains enormous, two small common electric vehicles.

If not #x27;There were no surprises on the governance side, everyone welcomes the pragmatism of these announcements, said analyst Michael Foundoukidis, from Oddo BHF.

“These are not very flashy projects, but rather simple to implement. We are starting again on a less ambitious basis than a few years ago. »

— Michael Foundoukidis, analyst at Oddo BHF

The objective was to try to convince that governance issues were covered. It's going to take time, the analyst continued. Investors' view of the Alliance is relatively negative, it can only get better.

Nissan's stock was up slightly Monday at the close of the Tokyo Stock Exchange, while Renault shares fell slightly in Paris.

After this long period of unrest, Japanese groups have yet to clarify their involvement in major Renault projects. Nissan said on Monday that it would buy up to 15% of the shares of Ampere, the future electric subsidiary of Losange, while Mitsubishi announced its intention to join.