After months of negotiations, Nissan and Renault reconditioned their alliance, putting them on equal terms – Nissan’s goal – and making way for Nissan to invest in its French partner’s electric-vehicle business – Renault’s goal.
As part of the fresh alliance, Nissan will manufacture a Renault model in Mexico in an effort to strengthen the automaker’s Latin American foothold.
Renault will cut its stake in Nissan from 43% to 15%, moving about 28% of Nissan into a French trust and thereby evening the field between the two, a longtime desire of Nissan's leadership. The Japanese automaker’s sales eclipse Renault’s, though the latter bailed it out nearly 25 years ago.
The partners will maintain a 15% stake in each other’s business in a cross-shareholding deal, along with voting rights, which Nissan didn’t have before. The deal also includes junior partner Mitsubishi Motors, which plans to build on its North American and European lines.
Nissan will invest in Renault’s new electric-vehicle and software business, Ampere.
Originally posted on Auto Dealer Today