Renault SA and Nissan Negotiate Partnership Overhaul
Renault SA and Nissan Motor Co. debate technology sharing as they negotiate an overhaul of their decades-old partnership.

Renault SA and Nissan Motor Co. debate technology sharing as they negotiate an overhaul of their decades-old partnership.
IMAGE: Nissan
Renault SA and Nissan Motor Co. debate technology sharing as they negotiate an overhaul of their decades-old partnership, according to a Reuters article.
The French and Japanese automakers announced earlier this month that they were in talks about the future of their alliance. The negotiations, they said, included Nissan potentially investing in an electric vehicle (EV) business spun out of Renault.
The discussions included having Renault sell some of its roughly 43% stake in Nissan, which Reuters previously reported would put the pair on more equal footing and dramatically change the alliance founded in 1999.
Now the sharing of intellectual property has dominated negotiations, two sources told Reuters.
"What matters is what Nissan brings in intellectual property, engineers and common projects," one source said.
French dominance has long been a sticking point in the relationship. Nissan holds just 15% of Renault - and has no voting rights. Many Nissan execs see the relationship as unbalanced, especially regarding development.
Their concerns also center on sharing future technology, including the all-solid-state batteries for electric vehicles in development, the second source said.
Renault is splitting off its EV business, code named "Ampere", from its legacy internal combustion engine unit, code named "Horse”.
France’s government also holds about 15% of Renault and desires to have the automaker hold onto its industrial and technical advantages, reported finance minister Bruno Le Maire has said.
Renault wants Nissan to invest in its EV unit, while Nissan wants Renault to cut its stake to 15%, Reuters reported.
The pair have not reached an agreement on investment, as it is difficult to determine figures without a clear valuation of the unit, three sources familiar with the negotiations told Reuters.
Given its investment needs, Renault is the more eager than Nissan to reach a deal, noted a person familiar with negotiations.
"There is no reason why Nissan has to absolutely participate" in the unit, the source said, citing Nissan's need to explain cost-effectiveness of investments to shareholders.
Though details need to be finalized, a process that could take weeks, the automakers aim to make an announcement on Nov. 15, one source said.
Another source noted that alliance junior partner Mitsubishi Motors Corp. will likely invest a few percent in the new Renault unit to retain its alliance relationship. Mitsubishi reports it has not yet entered detailed consideration about investment
Originally posted on Auto Dealer Today
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →