Renault Group and Nissan have entered into a binding framework agreement with a view of reaching definitive agreements by the end of the first quarter of 2023.
In other words, the Renault-Nissan-Mitsubishi Alliance has agreed to reset and re-balance the partnership in the face of changing technology and market realities.
Following approval by the Boards of Directors of Renault Group and Nissan Motor Co., Ltd, Renault-Nissan-Mitsubishi Alliance earlier this week announced a series of new initiatives to take their partnership to the next level.
As part of this new agreement, the companies have committed to some new tech moves including, Renault Group launching the FlexEVan with Nissan, its first ‘Software-Defined Vehicle’ in Europe.
For India and export markets, Renault Group and Nissan are set to collaborate on several new vehicle projects including new SUVs shared by both Renault Group and Nissan, and a new Nissan car derived from the Renault.
The newly agreed partnership is described as a three-dimension programme to maximise value creation for all Alliance stakeholders.
Under the terms, the Alliance will focus on high-value-creation operational projects in Latin America, India and Europe.
All three Alliance companies have also agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.
The final dimension reflects a rebalancing of power between the three partners which addresses a collaboration which was theoretically dominated by Renault. As Renault CEO Luca de Meo told Automotive News Europe, “We now have an open relationship rather than a forced marriage.”
Renault currently has a 43.4% voting stake in Nissan, effectively giving it more clout over Nissan which holds a 15% non-voting stake in Renault. This has effectively given Renault control despite Nissan being more profitable and a market value which has, at times, been double that of its French counterpart.
Renault Group has now agreed to transfer 28.4% of Nissan shares into a French trust and a limitation of its voting power within Nissan to 15%, effectively creating parity between the two companies and their ability to influence each other’s corporate decision-making.