Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Renault-Nissan rejig how they manage Daimler partnership - sources

Published 06/24/2021, 10:10 AM
Updated 06/24/2021, 10:16 AM
© Reuters. FILE PHOTO: The logos of car manufacturers Nissan and Renault are pictured at a dealership Kyiv, Ukraine June 25, 2020. REUTERS/Valentyn Ogirenko

By Gilles Guillaume

PARIS (Reuters) - The Renault-Nissan-Mitsubishi alliance is set to scrap a role overseeing ties with Daimler (OTC:DDAIF) in favour of individual relations with the German group, three sources told Reuters, as they try to better manage a partnership that has not met initial hopes.

The shift comes as alliance-level executive Jacques Verdonck, who was in charge of the cooperation with Daimler, retires at the end of the month, the sources familiar with the matter said.

France's Renault (PA:RENA) will instead rely on its head of partnerships, Sandra Gomez, while Nissan (OTC:NSANY) will do the same with Catherine Perez.

Mitsubishi will also have a person in charge of partnerships, the sources said, adding the bilateral approach was in line with the new "leader-follower" strategy of the alliance. That involves leaning on the strengths of each carmaker in certain areas.

Renault and Daimler declined to comment, while Nissan could not immediately be reached for comment.

The plan marks another shift following the end of the Carlos Ghosn era at the alliance. The architect of the Franco-Japanese partnership, who also extended the collaboration to Daimler, was arrested on financial misconduct charges in Japan in late 2018, before fleeing to Lebanon in 2019. He denies any wrongdoing.

His exit strained already difficult relations between Nissan and Renault, which are now working to get back on track with cost-saving joint production projects among other steps.

The partnership with Daimler - which owns high-end brand Mercedes-Benz, contrasting with the more accessible models produced by the others - has also looked in danger of losing steam. Nissan and Renault, both hit by losses, recently sold down their stakes in the German group.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Collaborations on Renault's compact Twingo car and Daimler's Smart model are set to end, and some targets for industrial cooperation have been downgraded over the years.

But Daimler still has a factory in Mexico with Nissan, and has been exploring the possibility of jointly developing at least one large van model with Renault.

An industry shift towards electric vehicles could yet yield other opportunities, one of the sources said.

"The collaboration with Daimler is at present made up of Renault-Daimler projects, Nissan-Daimler ones and some between the three," another of the sources said, with yet another saying that the changes reflected a more pragmatic approach.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.