Tokyo [Japan], February 8 (ANI): The decision by Nissan and Renault to reorganise their alliance means the two companies will now be more independent, but will work together when opportunities arise, an expert on the auto industry said, reported NHK World.
Japan's Nissan Motor and its French partner Renault on Monday finalised plans to rebalance their alliance. The boards of both companies agreed to change the shareholding structure to make the partnership more equal.
Renault will reduce its holdings of Nissan shares from the current 43 per cent to 15, the same percentage the Japanese automaker has in its French partner, the NHK World reported, adding that Nissan will also hold up to 15 per cent of Renault's new electric vehicle unit.
Uchida Makoto, President and CEO of Nissan Motor, said, "Equal partnership is an enabler of transformation. I'm very confident that this new structure will deepen mutual trust."Renault Group CEO Luca de Meo said the deal is substantial and based on operational commonsense and business intention.
Nissan partnered with Renault in 1999 when the Japanese automaker was on the brink of bankruptcy. It received more than 600 billion yen, or about USD 5 billion, in capital to rebuild its business.
But Nissan's sales have been larger than those of its French partner. The proceeds have boosted Renault's business for years, leading Nissan to call for an equal partnership, according to NHK World.
Both firms have seen their market share decline in recent years. In 2017, the Nissan, Renault and Mitsubishi Motors alliance became the world's second-largest automaker in terms of sales, moving more than 10 million units.
But last year, they sold just over 6 million to finish in fourth place, NHK World reported. (ANI)