Nissan rubbishes suggestion of Renault split

Nissan rubbishes suggestion of Renault split

Nissan has said it is in no way not considering the dissolution of its alliance with Renault, which was shaken even further by the dramatic escape of former chairman Carlos Ghosn from a trial in Japan.

“The alliance is the source of Nissan’s competitiveness,” the Yokohama-based company said in a statement, pushing back against reports that its executives have looked at the possibility of breaking with the global carmaking partnership.

“Through the alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies.”

The future of the alliance, created two decades ago when Renault took a stake in a near-bankrupt Nissan and which added Mitsubishi Motors in 2016, was thrown into question over the past year after Mr Ghosn’s arrest.

The executive, who was detained in November 2018 and fled at the end of December to escape trial in Japan on charges of financial crimes, played a pivotal role in keeping the alliance together.

In a news conference last week, the first since Mr Ghosn’s escape to Lebanon, the former chief executive of Nissan and Renault trashed the recent performance of the carmakers.

Indeed, the two have struggled financially — their shares were the worst performers among major carmakers last year — and have been drifting apart at a time when the costs of electrification and autonomous driving are pressuring firms to team up or consolidate.

It is unclear how feasible any separation would be, given that Renault holds 43% of Nissan’s shares as its biggest shareholder, while Nissan owns 15% of Renault its French partner.

Even so, Nissan is believed to have been exploring the pros and cons of sustaining the alliance, particularly when it comes to engineering and technology-sharing.

Those studies pre-date Mr Ghosn’s escape from Japan and were preliminary, according to sources.

The discussion over the future of the alliance underscores the fragile state of the relationship between the Japanese and French car giants after the arrest and later escape of Mr Ghosn, who balanced the world’s largest automotive alliance for years.

The board governing the alliance agreed in November to work to “significantly enhance and accelerate the operational efficiency of the alliance for the benefit of the member companies, including action plans to maximise the contribution of the alliance to each company’s strategic plans and operating profit”, Nissan said in its statement.

- Bloomberg

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