On Monday, Renault and Nissan announced revisions to their alliance, enabling a decrease in mutual share ownership and implementing additional steps aimed at supporting the struggling Japanese automaker.
The updated accord enables automakers to decrease their present 15 percent cross-shareholdings down to 10 percent.
Renault will additionally gain ownership of Nissan’s 51 percent share in their shared plant located in Chennai, India, where Nissan cars are manufactured.
Nissan won’t have to put money into Renault’s electric vehicle division, Ampère. However, Renault will keep working on and making an all-electric variant of its smaller Twingo model for Nissan to distribute across European markets.
Luca de Meo, CEO of Renault Group, expressed in an official statement that Renault Group strongly desires to see Nissan improve its performance at the earliest opportunity.
Since 1999, these two automakers have been collaborators, with Renault saving Nissan from financial ruin that year. However, various disagreements arose, mainly due to Renault owning a larger stake in Nissan. In 2023, the companies took steps to adjust their partnership equilibrium.
However, Nissan revealed earlier this year that they would be cutting thousands of jobs following a dramatic 93 percent drop in their first-half net profits. The company also anticipates recording a loss exceeding $500 million for the fiscal year 2024.
The CEO, Makoto Uchida, resigned in early March following the collapse of merger negotiations with Honda.
"Ivan Espinosa, the upcoming CEO of Nissan, stated that the company is dedicated to maintaining the value and advantages of our strategic alliance within the Partnership while taking steps to improve efficiency through turnarounds," he emphasized.
The revised alliance agreement won’t affect the extra 18.66 percent of Nissan’s shares that Renault owns through a French trust. These shares don’t provide Renault with voting rights at Nissan, which differs from their 15 percent ownership stake.
No comments:
Post a Comment