The automotive alliance between Renault and Nissan was put in doubt after French Economic Minister, Emmanuel Macron, increased its stake in Renault to 19.7%. Following a meeting between the two auto makers, the French Government has agreed to less interference, terms in which Nissan accepts.
“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." said Carlos Ghosn, Chairman and Chief Executive Officer of the Renault-Nissan Alliance.
The main concern of the crisis was the French government having a say in Nissan's operations, not just in Europe, but worldwide. The government's share in the partnership also meant more voting rights for the French government, which Nissan did not agree to. The Japanese car maker demanded less interference from its partner's home country, saying that they will cut their ties with Renault if their demands are not met.
As a result of the negotiations, the French government has agreed to lower its stake in the alliance, which now stands at 17.9 %. Renault has also agreed not to interfere with Nissan's day to day operations, allowing the latter a degree of independence from the alliance. Nissan, on the other hand, will not increase its 15% sharehold in Renault, or convert it into voting rights.
"I want to thank all parties involved in helping us reach today's agreement for their hard work, constructive spirit and business vision. We now look forward to all parties returning their focus to day to day operations to pursue sustainable growth for Renault and Nissan and to increase performance through additional Alliance synergies."