New CEOs at Renault and Nissan Seek to Repair Frayed Alliance

• New CEOs at Renault and Nissan re-evaluate alliance amid financial pressure and strategic shifts.

• Renault holds nearly 36% of Nissan but plans to reduce stake under 2023 restructuring.

• Ongoing projects include EV collaboration, India JV consolidation, and joint manufacturing plans.

Renault and Nissan have reopened talks to renew their still-ongoing 26-year alliance, prompted by leadership changes at both companies and continuing financial pressure at the Japanese carmaker.

The discussions follow the departure of former Renault CEO Luca de Meo, who had favoured reducing the French automaker’s stake in Nissan after a series of conflicts stemming from the 2018 arrest of former Nissan chair Carlos Ghosn. De Meo’s replacement, François Provost, is now reassessing the strategic value of the partnership.

Under a 2023 agreement, Renault began reducing its stake in Nissan from 43% to 10%. Renault currently holds close to 36%, including 18.7% in a French trust slated for sale, although its voting rights are capped at 15%. The stake sale was hindered by Nissan’s declining share value and a high premium sought by de Meo.

Earlier this year, Renault wrote down €9.5 billion in value from its Nissan investment. The Japanese automaker’s financial challenges have intensified. The company’s stock has fallen 25% over the past 12 months, and restructuring efforts have included multiple plant closures and 20,000 job cuts.

New Renault CEO François Provost has signalled a renewed interest in partnerships, citing the need for scale relative to competitors like Stellantis and Mercedes-Benz. A Renault spokesperson confirmed that Provost and newly appointed Nissan CEO Ivan Espinosa are in regular discussions, calling this a positive indicator for future cooperation.

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Renault has also modified its board representation at Nissan. Chair Jean-Dominique Senard stepped down in April, and new board members have been appointed to help support Nissan’s financial recovery.

Several collaborative initiatives remain active. Earlier this year, Renault announced it would acquire full control of its Indian joint venture with Nissan, strengthening its position in the market while enabling Nissan to raise capital. Nissan will continue to manufacture vehicles at the shared facility.

In northern France, Nissan is developing its own version of Renault’s all-electric Twingo using Renault’s EV platform. The two companies also maintain an alliance with Mitsubishi Motors and are exploring additional manufacturing and product development opportunities.

Nissan confirmed it is working on “several high-value strategic projects” with Renault, calling the alliance a key pillar of its business strategy.

While no new joint projects have been formally announced, sources familiar with the discussions said further collaborations are likely. Renault may seek to leverage Nissan’s presence in markets such as the United States, where it lacks a footprint. In a recent interview with the Nikkei newspaper, Espinosa acknowledged ongoing discussions with Honda in the U.S., despite the collapse of a potential merger earlier this year.

Source: Financial Times