Advertisement

Renault and Nissan: reboot or divorce?

Renault and Nissan have opened talks on the idea of Renault reducing its 43% stake in its Japanese partner.

Carlos Ghosn of Nissan © Getty Images

Carlos Ghosn of Nissan © Getty Images

In an attempt to salvage the "fraying alliance" between Renault and Nissan, the two carmakers have opened talks on the idea of Renault reducing its 43% stake in its Japanese partner, says the Financial Times. The arrangement has been "a source of tension" for the two, especially as the latter "holds only a 15% non-voting stake in Renault". The size of the cut is yet to be agreed Nissan is thought to be aiming for 20%-25%, while the French carmaker is thinking 30%-35%.

Advertisement - Article continues below

About time too, say Jacky Wong and Stephen Wilmot in The Wall Street Journal. While Renault has been "reluctant" to cut its stake, such a move could help "reboot" the relationship with Nissan, which in turn would allow it to restart deal talks with Fiat Chrysler, which were vetoed by a French government "worried that Nissan wasn't completely on board". Also, the move "would free up capital for Renault, potentially helping to negotiate more favourable terms with Fiat Chrysler". Indeed, Renault's shareholders have already reacted positively shares rose as soon as the news came out.

This isn't a reboot of the relationship more the first stages of a divorce, says Bloomberg's David Fickling. Internal Nissan emails imply that Nissan's ultimate goal is to cut Renault's stake to around 5%-10%. This suggests the Japanese company is only interested in maintaining the "appearance of an alliance" rather than substantive ties. The "writing is on the wall" for any further integration, or any of the "ambitious activities", such as the development of modular designs, that were pushed under former CEO Carlos Ghosn (pictured).

Advertisement
Advertisement

Recommended

Visit/517688/the-british-equity-market-is-shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Visit/511212/reasons-for-investors-to-be-bearish-but-stick-with-the-stockmarket-bulls
Stockmarkets

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019
Visit/510684/good-news-on-jobs-scares-stockmarkets
Economy

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019
Visit/economy/people/601601/wirecards-markus-braun-schmoozing-the-elite-with-tech-twaddle
People

Wirecard's Markus Braun: schmoozing the elite with tech twaddle

Markus Braun, the self-styled tech visionary behind failed German tech firm Wirecard, was adept at fooling the gullible. There were red flags from the…
4 Jul 2020

Most Popular

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/investments/stockmarkets/601611/nasdaq-all-time-high-markets-and-the-real-economy
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020