Nissan Tipped To Reject New Integration Proposal From Renault

Nissan will reportedly reject a management integration proposal from its French partner Renault, Nikkei Asian Review reports.

Renault allegedly made a fresh attempt to integrate with Nissan in the last two weeks. However, the latter isn’t interested in that proposal but wants a more equal capital relationship instead.

As it stands, Renault owns a 43.3 per cent stake in Nissan while the Japanese automaker has just a 15 per cent stake in Renault and no voting rights. The French government has long pushed for closer integration of the two automakers, but their relationship has been under considerable tension in recent months following the arrest of former chairman Carlos Ghosn late last year.

Also Read: Nissan Doesn’t Want The Same Chairman With Alliance Partner Renault

According to a source, “Renault’s move [to renew the integration push] will complicate the future of the alliance.”

The French company is thought to be looking for a closer alliance because in an ever-changing industry increasingly dominated by technological change, it could benefit greatly from Nissan’s experience with electric vehicles and self-driving cars. Not only does the Leaf easily outsell the Zoe, but Nissan also spent roughly $1 billion more on capital investments in the 2018 fiscal year. It also sells considerably more vehicles, and last year, shifted 5.65 million units compared to the 3.88 million vehicles sold by Renault.

Management at Nissan reportedly believes that it has not been treated as Renault’s equal under the existing relationship and thinks a closer integration could make this inequality permanent.

  • Vassilis

    Nissan did it, didn’t they…

    • sky8lade

      Nissan are corrupt scum.

  • Toronado_II

    Then, why Nissan don’t buy more stake in Renault ? French government control ?

    • designer_dick

      France passed a piece of legislation called the Florange law in 2014 that automatically doubled the voting power of long-term French shareholders in French companies, unless the company opted out. This had the effect of giving the French’s government’s 15% stake in Renault significantly more voting power and control rights. In stark contrast, Nissan’s 15% share of Renault holds NO voting rights whatsoever, and never has.

      Renault wished to opt out of the law, and attempted putting the issue to a shareholder vote, but the French government circumvented management by purchasing an additional €1.23 billion in Renault shares, effectively giving it enough clout to unilaterally block the motion.

      It seems to me that Renault would be quite willing to begin the process of moving toward a fairer, more equitable relationship with Nissan, if it weren’t for continued protectionist interference on the part of the French government.

  • Liam Paul

    All I am going say is Renault high ups and such better think long and hard about meeting Nissan exs in Japan , they could find themselves getting the Carlos Treatment next…

  • Giannis Antypas

    In case you were still wondering why Ghosn was axed…

    • Liam Paul

      yeap nothing but utter BS from those so called Japanese prosecutors, the Japanese prosecutors and that court system both should be charged with obduction. Clearly everything they are saying is not true, they have no evidence , I say show the world your cold hard evidence, the country of japan should not be allowed to get away with this. All to keep nissan out of the hands of being control by Renault.

      • Jason Clairmonte

        Obduction! Is that obstruction or abduction?

    • sky8lade

      He is actually being ill treated. Ghosn was close to merging the companies. There is a nice documentary on this.

      • Jason Clairmonte

        Well? Where is the link to the documentary? You just say that and post nothing?!?!?!

  • Mr. EP9

    Of course they are going to reject it, Nissan made it clear. Renault needs to wise up already because it’s obvious Nissan isn’t going to merge with them.

  • sky8lade

    Nissan should not have any say in the matter. Renault saved them! Dumb Japs

  • sky8lade

    You wish. New Renault engines are top.

  • sky8lade

    Vive Le Renault!

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