Renault share in Nissan to be reduced to 15 percent

The current share of the French Renault Group in Japanese manufacturer Nissan will be reduced to 15 percent.

According to the news of Japanese Public Television, which is based on market sources for the negotiations, Renault’s share level is planned to be reduced to 15 percent.

Renault has the largest share in Nissan with 43 percent, and Nissan has a 15 percent share in Renault. It is known that Nissan has been uncomfortable with the current share level difference for a long time. The two firms are negotiating to have their share levels mutually equalized.

According to the planning, it was stated that the shares would be transferred to another company discontinuously and sold in stages.

On the other hand, it has been reported that Nissan can take a maximum of 15 percent share in the new electric vehicle (EV) company that the French company plans to establish.

In these negotiations, it is stated that the French and Japanese company managers have agreed and the approval of the administrative councils is awaited.

Renault Cluster Chief Executive (CEO) Luca de Meo is expected to meet with Nissan CEO Makoto Uchida this week to finalize the negotiations.

Renault-Nissan created one of the world’s largest car clusters in 1999 with its Franco-Japanese subsidiary. Renault had invested nearly $4 billion in Nissan.

The French manufacturer has become Nissan’s largest shareholder, with its “redeeming move” for the Japanese company on the verge of bankruptcy. Japan’s Mitsubishi joined the alliance in 2016.

De Meo, the French manager for the negotiations, stated that they wanted to define the partnership again and said, “This is not a situation where ‘one side loses, the glutton wins’.” he said.

Former Nissan CEO Saikawa said the Japanese firm and the French firm needed to find a solution to the “unequal car alliance by reducing Renault’s stake in Nissan”.