With a mass sell-off.
Nissan has had a tumultuous few years recently and has seen some significant financial ups and downs. After the arrest of former CEO Carlos Ghosn in 2018, the company, together with its Alliance partner Renault, went after an eight-percent global market share but fell short of that target, and reported a $400 million operating loss.
Things are finally starting to look up for the Yokohama-based automaker, especially with the upcoming Nissan 400Z making major media waves. In what some are calling a bold move, Nissan and its French partner Renault are selling their stakes in the German auto manufacturer Daimler AG. What will become of the profits is still up in the air, but we have a good idea.
The allegiance between these three unlikely partners, which started back in 2010, was led by none other than former CEO Ghosn. The partnership aimed to facilitate collaboration between the three brands on everything from factories and new engines to compact and electric cars. The deal stipulated an equity state of around 1.5% in Daimler for both Nissan and Renault, while the German giant would claim a stake of 3.1% each of the others. This venture yielded a plant in Mexico, but nothing noteworthy has since stemmed from the group.
Renault was the first to make the move to sell its share in Daimler, and was quickly followed by Nissan. For Nissan this seems to be a positive move into a greener direction. The company is planning on using the sale to bolster its financials, invest more fully in electric vehicles and its e-Power hybrid vehicle technology, and work on its goal to become carbon neutral in the near future. Nissan will receive almost $1.2 billion from the deal. Daimler share prices have been keeping steady, and are currently trading at $72.22.