Renault owns nearly half of Nissan, part of alliance with two and Mitsubishi
French automaker looking to raise funds to pay for EVs
Renault has owned a big stake in Nissan for more than 20 years. It’s a big part of the alliance between the two companies. Now, a report says that the French automaker is looking at selling part of that stake to help raise the billions of euros needed to pay for the transition to electric vehicles.
The French company owns around 43 percent of Nissan, some 1.83 billion shares. Bloomberg reports on Renault’s sale considerations, citing sources who did not want to be identified.
Possible customers for a portion of Renault’s share include Nissan itself. The report points out that Nissan owns just 15 percent of Renault as part of the agreement, a lopsided deal that has caused internal friction.
Chinese giant Geely, who also owns Volvo and Polestar, is another possibility, say the report’s sources. Renault has worked with Geely before, agreeing earlier this year to work together on a new facility in South Korea.
Renault management was working toward turning the company around but has been bitten by its second-largest market, Russia. Following Russia’s invasion of Ukraine, Renault has begun to exit that market, which will be an expensive proposition both for future sales and for a manufacturing plant in the country.
The report also suggests that Renault could separate its EV company and its internal combustion operations. It could then partner with another automaker for those legacy vehicles.