Another attempt from Nissan to limit Renault control

#hashtags: #Nissan #Renault #France

Nissan has made new proposals aimed to limit the French government control over the alliance through Renault, sources have recently revealed. The Japanese carmaker felt a lot of pressure from its alliance partner Renault since the French Economy Minister Emmanuel Macron raised the government’s stake in Renault to 19.7 percent from 15 percent to secure double voting rights. Even Nissan’s labor unit broke a 16-year silence to condemn France over its latest actions which placed Renault in a more powerful position within the alliance. A new document asserts Nissan’s strong position over the situation. The Japanese company is seeking to limit the French voting rights in Renault, as well as written guarantees against intervention in its operations by the French carmaker, which owns 43.4 percent of Nissan, sources familiar with the matter said, confirming a report in Le Figaro. Under the new proposals, any other attempt to gain further control in the partnership would free Nissan to buy shares in Renault and cancel their alliance agreement. In confidential proposals revealed by Reuters, Nissan threatened it would take steps to end Renault’s control by raising its own stake in the French carmaker to at least 25 percent and activating voting rights. Nissan currently owns a non-voting 15 percent stake in Renault. The two sides have been in talks for two months now, trying to defuse the tension. A crucial meeting is to take place on 11 December, in which Emmanuel Macron and Carlos Ghosn, chief executives of both carmakers, are to decide what is the best direction to take so this long lasting alliance still works. Via Reuters