Renault Group and Nissan have officially launched a revamped version of their long-standing alliance, following regulatory approval. The French and Japanese automakers, partners for the past 24 years, introduced the latest alliance in February to foster a more balanced partnership.
“After having obtained all required regulatory approvals, the New Alliance Agreement between Renault Group and Nissan comes today into force and replaces the former agreements governing the Alliance,” stated both manufacturers in a joint announcement with Japan’s Mitsubishi on Wednesday.
Jean-Dominique Senard, the alliance’s chairman, emphasized the significance of this development, noting that the New Alliance agreement was signed in July. He added, “This is a very important step for Renault Group, Nissan, and Mitsubishi Motors, and lays the foundations for a new fair, long-standing, and effective partnership.”
Mitsubishi, a partner since 1999, is not directly affected by the recent announcement.
The new alliance signifies a shift from the previous structure where Renault owned 43.4% of Nissan. Both companies now hold a cross-shareholding of 15%, with their respective voting rights capped at this level. The statement clarified that both firms can freely exercise their voting rights within this limit, marking the end of French dominance in the partnership.
The relationship, which began in 1999 when Renault established a presence in Tokyo, has endured various challenges, including the French state becoming a major Renault shareholder in 2015. The partnership faced further turbulence with the high-profile arrest of Carlos Ghosn, then-head of the alliance, in 2018 over allegations of false accounting.
The ‘New Alliance’ brings changes, including Renault transferring 28.4% of its Nissan shares into a French trust, where voting will be done neutrally, except for limited exceptions. Renault will continue to enjoy economic rights from the entrusted Nissan shares until they are sold, with Nissan having the right of first offer when and if Renault decides to sell its Nissan shares.
The collaboration between Mitsubishi, Nissan, and Renault allows the three automakers to achieve cost savings, as Renault and Nissan share engines, and some Renault cars are sold under the Mitsubishi brand. The alliance spans 375,000 workers worldwide.
