NISSAN CEO Makoto Uchida looks like renault CEO Luca De Meo and Mitsubishi CEO Takao Kato shakes hands during a press conference to announce the new agreement between Nissan and Renault on Monday London.
LONDON — Carmakers Renault and Nissan on Monday officially restarted a relationship that has become fractured, culminating in a The spectacular fall of top executive Carlos Ghosnwho led successful turnarounds at both companies before being caught and daringly escaped.
Board of Directors of both companies approved balance the shares each automaker holds in the other up 15%, providing a better balance in the Franco-Japanese alliance, which also includes smaller Japanese automaker Mitsubishi Motors Corp. Unequal share ownership is sometimes cited as a source of conflict.
To date, the French Renault Group owns 43.4% of the shares Nissan Motor Co., while the Japanese automaker owns a 15% stake in Renault.
Renault board chairman Jean Dominique Senard said at a press conference in London, calling it a “new era.” “We have been waiting for this moment for a long time.
Nissan plans to invest up to 15% in Ampere, Renault tram and software in Europe that Mitsubishi will also consider investing in. The automakers said they will cooperate in markets around the world, including Latin America, Europe and India.
The moves come at a time when the extremely competitive auto industry is undergoing a major shift towards electric vehicles and other eco-friendly models.
The long-rumored changes to the carmakers union were announced a week ago. According to the companies, shares equivalent to 28.4% of the shares will be transferred to a French trust fund.
Renault, whose largest shareholder is the French government, and Nissan have agreed to an orderly sale of that stake, although there will be no deadline.
Nissan CEO Makoto Uchida vowed to take the alliance to the “next level of transformation” to adapt to a new era.
“This is not a choice but a need,” he said.
In theory, partnerships are a good way for automakers to cut costs by sharing parts, production and technology, especially as the industry is undergoing dramatic change. Same with electric cars.
It also means that, once formed, ending an alliance can be difficult because the companies’ development, production, and product processes are inextricably linked.
However, the partnership can be fraught with difficulties due to the different corporate cultures of automakers, especially when it comes to the encounter between the West and the East.
The Renault-Nissan Alliance, started in 1999, is plunged into scandal when Ghosnthe executive sent by Renault to lead a shift at the then-bankrupt Nissan, was arrested in Japan in 2018 for financial violations.
Ghosn, who says he is innocent, jumped on bail in a daring escape by hiding in a box on a private jet and now lives in Lebanon, which does not have an extradition treaty with Japan. Renault and Nissan have stayed away from the Ghosn scandal.
In an interview with the Associated Press, Senard emphasized that Renault is definitely in the post-Ghosn era.
“That was in the past. I mean, nobody at Renault today talked about that topic,” he said without mentioning Ghosn’s name. “Honestly, they’re all focused on the future, on what we’re doing. “
With its Ampere project, Renault is trying to strengthen tram product line like other automakers, adding to an increasingly competitive field that has long been dominated by Tesla. Senard said he is confident about the French carmaker’s chances.
“You look at new car produced from today’s Renault factories. They’re beautiful,” he said. “I mean, they have nothing to be jealous of when looking at Tesla and the others.”
The Renault chairman acknowledged that Chinese electric car brands exporting to Europe have a “strong cost advantage” but that gives the French carmaker an added incentive to compete.
“It was a bet, but as you understand, we decided to win that bet,” he said.
Executives at the press conference, including Renault CEO Luca de Meo, emphasized that cooperation, cost reduction, model supply and sales will increase, noting that that the company’s relationship will look to the future and become “normal”.
Senard seems to have acknowledged the bumps in the road as he expressed hope that past misunderstandings will be remedied.
“These disappointments are behind us,” he told reporters.
Renault left the Russian market last year after the invasion of Ukraine, selling its majority stake in Avtovaz, a Russian car company best known for its Lada brand, and factory in Moscow for a symbolic ruble. .
Senard told the AP that the door remains open for the company to return.
“If one day we think it makes sense to return to Russia in one form or another, that means a lot will change. If that happens, why not?” he said.
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Kageyama reports from Tokyo.
