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.
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.