Joint projects with the alliance partner Nissan should bring cost advantages.
(Photo: Bloomberg)
Paris After the reorganization of the ownership structure in their alliance, the car manufacturers Renault and Nissan are planning to jointly develop new models in the future. The Franco-Japanese alliance, which includes Mitsubishi, on Monday announced collaboration on projects in Latin America, India and Europe. In addition, cooperation in the field of electromobility is to be intensified.
“This far-reaching program paves the way for the renewal and strengthening of this 24-year-old partnership, creating a new spirit and leveraging the technologies of all three alliance members,” they said in a joint statement. The renewed partnership will create additional growth opportunities and improve the efficiency of each individual company.
Renault boss Luca de Meo said the joint projects could bring cost benefits of between a few hundred million euros within a few years and a few billion by 2030. “The importance of these projects has so far been underestimated,” he said.
Renault and Nissan want to work together in Argentina, Mexico, India and Europe
In Argentina, Renault and Nissan now want to develop a new pick-up truck that will be produced at the Renault plant in Cordoba. Nissan, in turn, will also build models from the French partner at its location in Mexico.
In India, Allianz wants to work together in the SUV segment. In Europe, one of the issues is the development of an electric van model. In addition, Nissan and Renault want to cooperate on the European markets in the development of a charging station infrastructure and the recycling of batteries for electric cars.
Nissan and Renault also signed the new alliance ownership agreement on Monday, after the boards of directors of both companies gave the go-ahead. Last week, the carmaker announced that Renault would reduce its stake in Nissan from 43 to 15 percent.
After months of negotiations, Nissan and Renault had agreed on a cross-shareholding of equal amounts of 15 percent each.
(Photo: Reuters)
The alliance formed at the end of the 1990s was increasingly burdened by the unequal ownership structure. Nissan, which has always held just 15 percent of Renault, felt dominated by the French. In addition, unlike Renault, the Japanese group has not previously had any voting rights with its partner – that too is now changing.
Renault wants to transfer 28.4 percent of Nissan shares to a trust company and waive the associated voting rights. However, there is no set period for the sale of the shares by trustees. Renault will part with the shares if it is “economically sensible”, it said.
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With the balance in the shareholdings, both groups are also paving the way for future cooperation in electromobility. Renault is aiming to split its activities: A division called Ampere will be dedicated exclusively to the development and construction of electric cars. The classic business with combustion and hybrid vehicles will be spun off.
“We can now operate like a normal company”
As part of the agreement, Nissan committed to owning up to a 15 percent stake in Ampere. Mitsubishi is also considering entering the electric car division, whose IPO Renault is aiming for in the second half of the year. Meanwhile, Renault wants to set up a joint venture with the Chinese carmaker Geely for combustion engines.
“I think what we have agreed is a much better lineup than in previous years,” de Meo said at a joint press conference with Nissan boss Makoto Uchida and Mitsubishi boss Takao Kato in London on Monday. “We now have a new governance system that is much more straightforward. We can now operate like a normal company.”
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