Nissan Motor Co. is preparing to reduce its shareholding in long-standing partner Renault SA, according to Chief Executive Officer Ivan Espinosa in an interview with Nikkei. This move underscores a broader restructuring of the Franco-Japanese alliance, aimed at creating a more balanced and agile partnership amid ongoing industry headwinds.
The Japanese automaker currently holds a 15% stake in Renault, though both companies announced in March that they had agreed to revise their minimum cross-shareholding requirements to 10%. Under the terms of the revised alliance agreement, any share sale must be coordinated between the two parties and is subject to a right of first refusal.
A potential sale of a 5% stake in Renault could generate approximately ¥100 billion (equivalent to US$640 million or RM2.94 billion at prevailing market rates), according to Nikkei. The proceeds would be channelled into vehicle development initiatives, as Nissan adapts to increasingly competitive global market conditions.
“We are bringing down our cross-shareholdings in order to invest in vehicles,” Espinosa was quoted as saying.
The announcement coincides with news from Renault that its CEO, Luca de Meo, is stepping down to pursue opportunities outside the automotive sector, signalling further change within the alliance’s leadership structure.
This latest development reflects a continuation of the realignment strategy initiated in 2023, which saw Renault begin a gradual divestment of its stake in Nissan. Those shares are currently held in a French trust as part of efforts to recalibrate the partnership and provide Nissan with a more equitable position within the alliance.
-Reuters
