Renault And Nissan Have Struck A New Partnership Deal

Industry News / 1 Comment

The partnership will live on.

Nissan and Renault have finally come to an agreement on the grounds of the companies' future partnership, subject to the approval of each company's board of directors. The partnership, which can trace its roots back to 1999, is set to continue until 2030 and thanks to this agreement, will continue the meaningful relationship the two companies have shared for years.

This decision has come after months of speculation about what changes the agreement would bring, or if the companies would stay together at all. The major issue so far has been that Nissan has wanted to make sure its proprietary technology was kept safe since Renault has a deal with Chinese automaker Geely. Nissan has been investing a ton of money into electric vehicles like the Ariya, and the last thing it wants is for that tech to reach competitors.


The first change of the reborn alliance will be a refocusing of the partnership on high-value projects. These projects will be focused on Latin America, India, and Europe, and will consist of market, vehicle, and technology projects. On top of this, the automakers want more initiatives that each company can join.

The first is that Nissan will invest in Ampere, the EV and software company that Renault founded, to become a strategic shareholder. Just last year, the companies announced they are investing $26 billion into electric technology with plans to build 30 new electric vehicles, and this seems to be a stepping stone towards that goal.

The rest of the deal will focus on the important restructuring of shares. Renault and Nissan will retain a 15% cross-shareholding, with a lock-up obligation and standstill obligation, which means deferring from selling shares for a period of time and a "standstill" period protecting the companies from a takeover. Both companies will then be allowed to exercise the voting rights capped at that 15% freely.

Renault Nissan Mitsubishi

Renault will then transfer the rest of its stake in Nissan, 28.4%, into a French trust where voting rights will be neutralized for most decisions, but Renault will still enjoy the economic rights in dividends and shares' sale proceeds. Renault will then instruct the trust to sell the shares when commercially viable, but is under no obligation to sell them in a pre-determined amount of time. The Alliance Operating Board will also remain the coordinating forum.

All of this is still predicated on board approvals, but they're more than likely to go through. It's good news for the two companies, but it's hard to know what impact, if any, this will have on the US market. Hopefully, the new partnership will bring about more electric innovation that we'll soon see on our streets since its strategy of taking ages with new models needs to change.

2023 Nissan Ariya Side View Driving Nissan
2023 Nissan Ariya Rear Angle View Nissan
2023 Nissan Ariya Forward View Nissan

Join The Discussion


2023 Nissan Ariya Side View Driving
2023 Nissan Ariya Rear Angle View
2023 Nissan Ariya Forward View

Related Cars

To Top