Major Alliance Overhaul Announced: Renault and Nissan on Equal Footing

In a historic move, Renault and Nissan have jointly announced a remarkable overhaul of their longstanding alliance, marking the first major change since Renault rescued Nissan from near bankruptcy in 1999.

The core of this overhaul involves Renault reducing its controlling stake in Nissan from 43% to 15%. This shift aims to rebalance their relationship and enhance value creation for all stakeholders.

Renault will transfer 28.4% of its Nissan stake to a French trust, where voting rights will be neutralized for most decisions. However, Renault will retain rights to dividends and share-sale proceeds, safeguarding the value of its remaining holding.

The trustee may sell these shares in the future under commercially viable conditions, although no specific timeline has been set.

In return, Nissan will invest in Ampere, Renault’s new electric vehicle and software business spinoff. While the exact stake size or value hasn’t been disclosed, Nissan is prepared to invest up to 15%, with Qualcomm also expected to participate in the venture.

Ampere will focus on developing and marketing fully electric vehicles compliant with stringent European emissions standards, with Nissan and Mitsubishi Motors gaining access to this technology for their European lineups.

Additionally, Renault and Nissan plan to strengthen their international collaboration with new projects in Latin America, India, and Europe. These initiatives will address market penetration, vehicle development, and technology sharing, aiming to deepen operational synergy.

The restructuring aims to equalize cross-shareholdings between Renault and Nissan, alleviating longstanding tensions within Nissan and setting the stage for what some are calling “Alliance 2.0.”

Formal approval of these measures by both companies’ boards is pending, with an official announcement expected as early as February 6th, marking a new chapter in the alliance’s storied history.