Nissan forces Renault to reduce stake – WSJ – 10.08.2022 at 13:28

Nissan forces Renault to reduce stake - WSJ - 10.08.2022 at 13:28

File photo of Nissan and Renault logos

(Reuters) – Nissan Motor Co Ltd is pressuring partner Renault SA to reduce its stake in the Japanese automaker and renew their more than 20-year alliance, the Wall Street Journal reported, citing sources with knowledge of the file.

French carmaker Renault owns about 43% of Nissan, while the Japanese firm owns 15% of its largest shareholder, but no voting rights.

In June, Nissan revealed for the first time some details of this alliance agreement, which prevents Renault from unilaterally increasing its stake in Nissan beyond 44.4%.

Nissan would take advantage of ongoing discussions on Renault’s project to create a structure dedicated to electricity in order to ask the French manufacturer to reduce the stake it has in its capital, the Wall Street Journal reported.

Renault wants to split the electric car and internal combustion engine businesses to catch up with rivals like Tesla and Volkswagen in the electric field.

Nissan has yet to say how it intends to support the project. Its chief operating officer, Ashwani Gupta, traveled to France last month with other company executives to discuss it, the Wall Street Journal said.

Renault plans to present a detailed plan for this new organization this fall.

The French manufacturer declined to comment on the article. Nissan was not immediately available to respond to questions from Reuters.

(Reporting by Rhea Binoy in Bangalore, French editing by Caroline Payet)

Leave a Comment

Your email address will not be published. Required fields are marked *