Relationships do not always live up to the hopes of yesteryear. In 2018 Carlos Ghosn, then boss of the Renault-Nissan-Mitsubishi alliance, predicted combined sales of 14m vehicles in 2022. In fact sales may not have hit half that number. Pandemic-era supply-chain snarl-ups are only partly to blame. Another reason was the failure of Mr Ghosn’s plan for a much closer bond between Nissan, the Japanese firm he had rescued from bankruptcy in 1999, and Renault (the smaller Mitsubishi has been less integral to the pact). Although the partners benefited from joint purchasing, a few shared factories and some common parts and designs, Nissan largely followed its own road: the Renault Zoe and Nissan Leaf, similar electric cars, shared few components.
Listen to this story. Enjoy more audio and podcasts on iOS or Android.
Your browser does not support the <audio> element.
Save time by listening to our audio articles as you multitask
OK
On January 30th, after months of wrangling, the companies at last reset the lopsided liaison resulting from Nissan’s salvage. This had involved the Japanese firm holding a 15% stake in Renault, with the French carmaker controlling 43% of Nissan. The uneven arrangement always infuriated the bigger and generally more profitable Japanese firm, which feared meddling by the French state, which owns 15% of Renault. Tensions were held in check only by the force of Mr Ghosn’s personality—until his detention in Japan for what he says were trumped-up charges designed to derail his plans for a closer tie-up.
The new set-up would, if the boards sign off on it, reduce Renault’s voting rights at Nissan to 15%, with the remaining 28% of shares being put in a trust. This suits both firms, not least because it lets them avoid the near-impossible task of unpicking the longstanding union. Nissan would gain voting rights to match its hitherto non-voting Renault interest. For Renault, the change removes the frustration that its stake in Nissan did not…
2023-02-02 09:18:13 An alliance between Renault and Nissan gets a reboot
Post from www.economist.com In a move that has been long anticipated by industry watchers and analysts, the Renault-Nissan Alliance was recently announced to have undergone a major reboot. Following a decade of successful collaboration, the two global automakers have decided to further strengthen their relationship and to double down on strategic investment for the future.
The Alliance, formed in 1999, was designed to utilize the strengths and capabilities of both companies in order to create a powerful automotive powerhouse. This original agreement has enabled the duo to expand their reach beyond their core markets, as well as develop and launch innovative technologies and vehicles.
The rebooted alliance comes after a tumultuous period that saw the departure of several top-level executives. The partnership, however, is now more focused and determined than ever to create a future of both cost efficiency and customer satisfaction.
The joint plan under the new reboot includes shared governance and a oneness of mission and strategic intent. Carlos Ghosn, Chairman and CEO of the Alliance, has committed to driving down costs and increasing collaboration, in order to acquire more savings. Allowing greater access to global markets, both companies will focus on developing and manufacturing vehicles that are in high demand in territories around the world.
Both Renault and Nissan will also be prioritizing the use of advanced technologies within their shared investments. This will include the development of autonomous and electric vehicles, as well as mobility services. By utilizing the resources and expertise of both automakers, the Alliance aims to stay ahead of the competition in the rapidly changing automotive landscape.
With the newly restarted partnership, it is clear that the Renault-Nissan Alliance is more determined than ever to provide customers with reliable and efficient vehicles. Through their shared technological advancements, the Alliance stands to become an even stronger corporate entity, with a larger presence in the global automotive market.