Renault, Nissan Further Loosened Ties to Boost the Japanese firm's Turnaround

On Monday, Renault and Nissan announced that they have agreed to amend their two-decade-old partnership further, allowing for a reduction in their cross-shareholdings to help Nissan's recovery.

The major change in terms includes lowering the required shareholding to 10% from 15% previously, announcing before Ivan Espinosa helm the role of CEO of a Japanese automaker, under significant pressure to boost the brand's competitiveness in the global market. Under this new agreement, Nissan will be released from its promise to invest in Renault's electric Ampere. For this exclusive project, Nissan pledged around $648.96 million.

Renault CEO Luca de Meo said that the Renault Group, being a long-standing partner and the main shareholder in the Nissan alliance, is highly invested in the swift turnaround of Nissan's performance.

Renault has also announced to acquire a majority stake in Renault Nissan Automotive India Pvt Ltd's joint venture, which will likely be completed in the coming months.

After the decision to acquire the Indian business of Nissan for approximately $216.10, Renault reported a free cash flow of at least $2.16 billion in 2025.

For the last several years, Nissan, where Renault holds the largest 17.05% shares, has been plagued by declining sales figures.

Based on the company's official statement, the amendment to the joint venture agreement, which in 2023 executives rebalancing of cross-shareholdings, and termination of Nissan's commitment to invest in Renault Ampere, are subject to certain preconditions being fulfilled, and expected by the end of May.

The incoming CEO, Espinosa, stated that Nissan was committed to preserving the value and benefits of their strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies.