Renault-Nissan alliance rocky but positive atmosphere holds good signs

By Al Mayadeen English
Source: Agencies
15 Nov 2022 09:57

The CEO of French carmaker Renault and the head of the tri-alliance between Renault and Japanese Nissan and Mitsubishi says that the positive atmosphere between the two is a good sign for the future.

2030 Alliance between French Renault and Japanese Nissan and Mitsubishi.

French and Japanese automakers, Renault and Nissan, are in discussions to reach a more suitable future deal that will attend to both companies' strategic interests, Renault's chief said.

The carmakers that have been in a union spanning nearly 23 years are aiming to drastically reform the shape of their alliance as Nissan, which owns 15% of Renault while the latter owns 43% of Nissan, has been troubling the Japanese carmaker giant for a long period for the lack of balance of power.

The alliance deal was reached in 1999 after the French carmaker pulled Japanese Nissan from bankruptcy.

AFP reported, citing an informed source, that the talks behind the scenes involve the mutual share-owning arrangement in addition to a possible deal for Nissan to invest in Renault's new line of electric vehicles.

According to the source, however, Renault's fears over sharing EV intellectual property, among other things, have held back the announcement.

Renault revealed earlier this month that it will divide its operations into two separate lines, one in charge of EV while the other will be focused on diesel and hybrid cars, and will be under a joint venture with China's Geely, an agreement that has been criticized in Japan in fear of tech secrets being transferred to China.

Confidence and trust have never been as high

The CEO of Renault and head of the alliance between the two companies, Jean-Dominique Senard, stated to reporters in Tokyo that the "warm atmosphere" between the two parties "bodes well" for the future of the alliance.

Senard added that since he became in charge of the three-way alliance nearly four years ago, including the recent agreement with Mitsubishi, "confidence and trust have never been as high", noting that the new deal regarding updated shares will be announced "in due time".

It's noteworthy that French prosecutors issued earlier this year five international arrest warrants against Carlos Ghosn, the former CEO of Nissan Motor Co. and Renault, claiming that Ghosn used the Omani vehicle distributor to divert millions of dollars from Renault for his own purposes, including the purchase of a 120-foot yacht.

Ghosn fled to Lebanon in 2018 while hiding in a musical equipment box, to escape charges of financial malfeasance in Japan.

The news rocked the alliance between the two carmakers, causing rising tensions and concern regarding the future of the agreement.