Renault and Nissan have revised their partnership to allow them to reduce their cross-shareholdings and take new measures that will help the struggling Japanese carmaker.
The new agreement will allow the carmakers to reduce their current 15% cross-shareholdings to 10%.
Renault will also acquire Nissan's 51 percent stake in their joint factory in the Indian city of Chennai, which will produce Nissan vehicles.
Nissan will no longer be required to invest in Renault's electric vehicle development unit, Ampere, although the French company will continue to develop and produce an electric version of its Twingo subcompact car, which Nissan will sell in Europe.
"The Renault group is keen for Nissan to recover its financial performance as quickly as possible," said Renault group chief executive Luca de Meo.
The two automakers have been partners since 1999, when Renault rescued Nissan from bankruptcy. However, there are many concerns, particularly over Renault's larger stake in Nissan.
In 2023, the automakers worked to rebalance their alliance. Last year, however, Nissan announced thousands of job cuts after reporting a 93% drop in first-half net profit, and expects to report a loss of more than $500 million for 2024.
Its CEO Makoto Uchida stepped down earlier in March after merger talks with Honda broke down.
"Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance, while implementing turnaround measures to drive efficiencies," said new CEO Ivan Espinosa.
The amended alliance agreement will not affect the additional 18.66% stake in Nissan that Renault holds in a French trust. Those shares do not give Renault voting rights in Nissan under their alliance agreement, unlike the 15% stake. | BGNES, AFP
