Rebalancing act: A Nissan showroom in Tokyo. Final talks are underway for Renault to reduce its stake in the Japanese carmaker to 15%, according to sources. — AFP
TOKYO: Nissan Motor Co’s independent directors have endorsed proposals from Renault SA to rebalance a 23-year-old alliance and pave the way for the French carmaker’s own revamp, according to sources.
Final talks are underway for Renault to reduce its stake in the Japanese carmaker over time to 15%, said the sources.
Nissan’s full board, including representatives from Renault, will be meeting later this month to make a decision.
An alliance event could be held in early February. The meeting of Nissan’s independent directors Monday lasted for more than two hours, the sources said. Nissan is also still negotiating an investment in Renault’s planned electric-vehicle carveout Ampere and must decide the level of investment.
Renault, delivering on a turnaround plan, is in the middle of a sweeping overhaul to allow the carmaker to raise funds for electric-vehicle development and narrow the gap with bigger companies such as Tesla Inc.
This includes the split of its electric-vehicle and combustion-engine businesses, backed by outside investors.
At the same time, Renault and Nissan have been locked in talks for months over ways to rebalance lopsided capital ties that led to friction over the years.
“Tedious and lengthy negotiations might be about to end,” Stifel Europe Bank analyst Pierre-Yves Quemener said in an email.
This will mean “less management attention lost in corporate politics and more focus on execution.” — Bloomberg
