Renault is the largest shareholder in Nissan. The two companies are together with Mitsubishi in the so-called Renault-Nissan-Mitsubishi Alliance. Renault owns about 43.4% of Nissan, making it its largest shareholder.
For this reason, then, the market’s negative reaction to the news that Renault is considering reducing its stake in Nisan is understandable. Renault intends to do so as part of its efforts to separate its electric and internal combustion engine businesses.
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Especially within the electric mobility sector, Renault is a laggard, and management cannot afford to let this trend get away from them. The biggest competitor, of course, is Tesla. Even though Tesla has a segment of customers who often buy these cars mainly thanks to the cult of Elon Musk. So within the conventional electric cars, Volkswagen may be the biggest competitor.
Any plans would be subject to the approval of alliance partner Nissan, Renault’s CFO Thierry Pieton said, adding that the Japanese automaker is aware of all the options Renault is considering.
The alliance has previously unveiled common plans
In January, they said that they would work more closely together to produce electric cars. They detailed a $26 billion investment plan over the next five years.
But the unequal relationship in this alliance has long been a source of friction in Japan. Renault owns 43.4% of Nissan, which in turn has a 15% non-voting stake in its shareholder. Renault rescued Nissan 20 years ago but is now a smaller carmaker by sales. The current still-coming trend in the automotive sector may make things even more complicated for us. There is also a possibility in play about separating the electric car business and going public under a separate ticker.