Renault-Nissan ‘rebalances’ their alliance: Details revealed

The boards of France-based Renault and Japan-based Nissan have approved the redesigned alliance between the two. Earlier this month, the automakers announced that Renault will slash its stake in partner Nissan to 15% from the current 43% as part of an rebalancing act.

Revealing the details today, the Japanese car maker said that it will buy a stake of up to 15% in Renault's electric vehicles unit Ampere.

"Nissan's intention is to invest up to 15% in Ampere, Renault Group's EV & Software entity in Europe, with the aim to become a strategic investor," the statement said ahead of a presentation in London.

Nissan and Renault came into alliance two-decades ago in 1999 when Renault rescued Nissan from financial straits. They were later joined by partner Mitsubishi Motors. 

The alliance junior partner - Mitsubishi Motors is also reportedly considering to invest in Ampere, the companies said in a statement.

Last week, the companies announced that the French carmaker would reduce its stake in its Japanese partner to 15% from around 43% now. Renault will transfer 28.4% of Nissan shares into a French trust, making the two more equal partners in the alliance.

According to sources, the new agreement is aimed to make the alliance freer and more balanced for the next 15 years. The partnership will produce synergies from joint projects in Europe, India and Latin America, and the companies will work together in Renault's flagship EV business, electronics and solid-state batteries.

As per the reports, Renault will have full flexibility to sell the Nissan shares held in the trust but "it has no obligation to sell the shares within a specific pre-determined period of time."

When it does sell, "Nissan would benefit from a right of first offer, to its or the benefit of a designated third party." 

In November last year, Renault announced that it would split its operations in two businesses. It announced its new venture Ampere, and a separate subsidiary for petrol, diesel and hybrid cars that will pair up with China's Geely.

(With agency inputs)