Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Renault, Nissan to fill in the blanks on their rejiggered alliance

Published Feb 05, 2023 08:04PM ET Updated Feb 05, 2023 08:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logos of car manufacturers Nissan and Renault are seen in front of dealerships of the companies in Etampes, near Paris, France, January 26, 2023. REUTERS/Sarah Meyssonnier
 
GM
+1.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RENA
-0.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NSANY
+0.64%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MMTOF
+3.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gilles Guillaume and Nick Carey

LONDON (Reuters) - Nissan (OTC:NSANY) and Renault (EPA:RENA) on Monday are set to unveil details of their redesigned alliance and answer questions about Renault's electric vehicle (EV) business and how it will sell off most of its stake in the Japanese carmaker.

The two companies announced a sweeping remake of their two-decade-old automaking alliance last month, which should see the Japanese company invest in Renault's new EV unit Ampere.

That announcement came after nearly four months of intense talks complicated by concerns about the sharing of intellectual property as Renault sought tie-ups with companies outside their alliance.

The deal will see the French carmaker reduce its stake in Nissan to 15% from around 43%.

That will see Renault put around 28% of the Japanese automaker in a French trust, crucially making the two more equal partners.

Renault's board approved the deal on Sunday night, according to a source. Nissan's board is expected to meet early on Monday to approve it.

Investors and analysts will be looking on Monday for more clarity on how the trust will operate.

"There is absolutely no word about what's going to happen to those shares in the trust," said CLSA analyst Christopher Richter. "It seems they're all avoiding the issue of Nissan buying them back which I think would be the best thing for all parties involved."

Richter said Renault's brand is not seen as being a strong brand, so it may be tough for the French carmaker to raise money for Ampere.

"I wonder once this thing goes into the market how much money you would really raise, he said. "That's why I think they're going to push Nissan to pay too much."

The unequal relationship between the two carmakers had long been a source of friction among Nissan executives.

While Renault bailed out Nissan two decades ago, it is the smaller automaker by sales.

The alliance, which also includes junior partner, Mitsubishi Motors (OTC:MMTOF) Corp, was deeply strained by the ouster of its architect and former chairman, Carlos Ghosn, amid financial scandal.

CLSA's Richter said that the revamped alliance could enable Nissan and Renault to work together on R&D, shared costs and a few shared products "with a little bit less rancor and acrimony between them," but added that Honda and General Motors (NYSE:GM) have built a partnership that includes jointly developing lower-cost EVs together without any need for a capital relationship.

"One almost wonders what's the point of them having any stake in either one, any stake at all," Richter said.

Renault, Nissan to fill in the blanks on their rejiggered alliance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Ron Somma
RonSomma Feb 05, 2023 8:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Renault no
Peter Heeley
Peter Heeley Feb 05, 2023 8:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NISSAN yes
Elvis Durant
Elvis Durant Feb 05, 2023 8:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Renault.......Stay away from Nissan! Regards....
Peter Heeley
Peter Heeley Feb 05, 2023 8:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NISSAN.....STAY AWAY FROM renault !  Regards....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email