(Finance) – Le historic partners of the Franco-Japanese alliance in the automotive sector, Renault and Nissan Motorshave obtained the approval of their respective boards of directors to proceed with a restructuring of the alliance which has now lasted for 24 years.
As part of the renewed partnership deal, the two carmakers will have one 15% cross-participation. The participation of Renault in Nissan that was 42% will go down at 15% and the remaining 28.4% of its shares Nissan will be transferred to a French trust and will be without the right to vote. However, the economic rights, including proceeds from dividends and the sale of shares will still benefit the French automaker. The Japanese nissanfor its part, agreed to invest up to 15% in Amperethe new electric vehicle division of Renault.
Renault and Nissan have therefore reached a binding framework agreement to regulate these further stages of development of the alliance, with the aim of reaching a “final” agreement by the end of the first quarter and complete additional changes by Q4 after approval by regulators.
Both boards also approved projects for the development of new brands and technologies in Latin America, India and Europe.
This next level of the alliance – the two companies explain – will create greater opportunities for growth and help ensure the operational efficiency of each company to innovate and transform itself in a rapidly evolving market such as the one for automotive products and mobility services.