Renault agrees to limit influence at Nissan, details new joint projects

More details about recalibration Alliance Renault-Nissan-Mitsubishi was announced overnight at a press conference held in London.

EQUAL announced last weekit would see Renault voluntarily limit its influence at Nissan and eventually sell off a majority stake.

In return, Nissan is expected to take a 15% stake in Ampere, Renault’s new European-based electric vehicle and software division. Mitsubishi will also consider investing in Ampere.

There is also a flurry of new or reconfirmed projects between the two automakers across Latin America, Europe and India.

The two companies said the new Alliance agreement would be in effect for at least 15 years and provide the French and Japanese car companies with a new “enhanced strategic flexibility”. [as well as] new initiatives that partners can join.”

Final details are still being discussed, but assuming regulatory approval, the new agreement is expected to come into effect from Q4 2023.

voting rights

Since coming to the rescue of Nissan in 1999, Renault has owned a controlling stake in the Yokohama-based automaker.

Currently, Renault owns a 43.4% stake in Nissan, which under Japanese law gives it control of the Japanese company and the ability to nominate board members and CEOs. As part of their longstanding alliance, Nissan owns a 15% stake in Renault, but has no voting rights in the French company.

This has long been a contentious issue between the two automakers, especially in recent times when Nissan has outsold the French owner and also made more profits.

Under the new agreement, Nissan will eventually have the right to vote at Renault shareholder meetings. Both companies have agreed to limit their voting rights on ordinary matters to 15%.

Renault retains the right to nominate two members to Nissan’s board, and Nissan can still appoint two members to Renault’s board.

In addition, a 2016 agreement with the French state that prevents it from exercising its voting rights at Renault will be annulled.

The Alliance Executive Board will continue to operate and will help Renault, Nissan and Mitsubishi coordinate their vehicle and technology development plans.

Finally, Renault will sell off its stake in Nissan

Renault has agreed to reduce its ownership percentage in Nissan to 15%. To facilitate this, a 28.4% stake in Nissan will be placed in a trust fund.

According to the two companies, the trust will gradually sell its stake in Nissan when guided by Renault and in consultation with the Japanese company.

Nissan has a right of first refusal on any shares sold by the trust, but the trust “has no obligation to sell shares within a specific predetermined period.”

In most cases, the trust will vote “neutral”, except when electing members to or removing those on Nissan’s board of directors, where the trust will vote in line with the Renault delegation. or Nissan. It would also abstain from being backed by Nissan’s board.

New joint venture project

IN EuropeRenault and Nissan will look to work together to create the Megane small electric cars that will hit the market after 2026. These cars will likely use the 800V architecture and benefit from the network. The new charging grid will be deployed at Nissan and Renault dealerships.

Renault plans to launch a new electric FlexEVan in 2016 in Europe and it will be shared with Nissan. This continues a long relationship between the two parties, which has seen Nissan sell improved versions of Renault trucks on the Continent.

all over in Latin America, Renault’s “new half-ton pickup”, possibly a replacement for the Duster Oroch, will be shared with Nissan. Meanwhile, the Renault Alaskan based on the Nissan Frontier/Navara will continue to be manufactured by Renault in Argentina.

Nissan will also produce a new Renault-branded model at one of its plants in Mexico.

The two companies will also jointly develop a pair of city-friendly electric vehicles for sale in Latin America and India.

In the subcontinent, Renault and Nissan will co-produce a range of new crossovers, with the first being a Nissan-branded version of the Renault Triber.