Renault And Nissan Are Closer Than Ever To A Restructured Alliance Deal

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The latest intelligence indicates both sides want to finalize things before Christmas.

Sources close to the negotiations between Renault and Nissan have indicated both sides aim to announce a potential deal on a restructured alliance by mid-December. According to Reuters, negotiators from both automakers intend to meet in London in December to negotiate the final terms.

Renault chairman Jean-Dominique Senard said earlier this week he was "confident" his company and Nissan will reach a final agreement to restructure the currently fractured alliance, which nearly came apart following the arrest of now-former chairman and CEO Carlos Ghosn. Ghosn remains a fugitive in Beirut, Lebanon.

Sources familiar with the ongoing negotiations claim Renault wants Nissan to invest in its EV business, called Ampere. In contrast, Nissan wants Renault to sell off a portion of its 43% stake in Nissan. The goal is to bring greater equality to the alliance, which is a critical factor for Nissan.

Renault Renault

Currently, Nissan has only a 15% stake in Renault and zero voting rights. This point of contention has been ongoing for years, and Nissan wants it resolved once and for all on good terms.

Another central point that needs to be resolved is the sharing of intellectual property. Supposedly, it's a significant source of concern for Nissan following Renault and Chinese automaker Geely reaching a non-binding agreement a few weeks ago to launch a new joint venture.

Nissan doesn't seem to want technology for new EVs, like the Ariya, to be shared with others outside the alliance.

Renault Renault Renault

Mitsubishi, the third arm of the alliance, is also involved in the negotiations, but it's a much smaller carmaker than its partners and therefore has less influence. Representatives from all three automakers declined to comment on the report. Other factors that need to be resolved include legal and regulatory reviews.

Both are vital for upcoming new laws, such as Europe's decision to ban the sales of combustion engines beginning in 2035. Mitsubishi also needs to decide whether or not to invest in Ampere. However, that's not likely to happen until Nissan and Renault finalize and settle all outstanding issues and, ultimately, sign a deal.

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Source Credits: Reuters

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