A new deal has been reached between Nissan, Renault and the French government to allow for additional autonomy within the two automakers.
Earlier in the year, the French government increased its holdings in Renault from 15 per cent to 19.73 per cent, raising concerns that the French leadership would ultimately influence the balance within the Renault-Nissan Alliance. This was particularly concerning for Nissan, as Renault holds a 43 per cent stake in the Japanese brand.
As part of the new agreement, the French government is being offered 17.9 per cent of voting rights in Renault, while the French automaker as well as the government will not be permitted to interfere with the governance of Nissan, including the appointment, dismissal and compensation of Nissan Board members. Additionally, Renault won’t have a say in motions from Nissan shareholders not approved by the board of the Japanese firm. Additionally, Nissan won’t be able to increase its 15 per cent stake in Renault.
Discussing the deal, chairman and chief executiveCarlos Ghosn commented:“Today was an important day for the future of the Renault-Nissan Alliance. After months of discussions, I am happy to say that an agreement has been reached that builds on our heritage and strong foundations to achieve further sustainable growth and success of the two partners. While there were important short-term issues to address, it was imperative that all involved took a long view.”