Nissan and Renault are set to make an announcement in the coming days regarding their restructured alliance, according to sources familiar with the matter. The deal has been finalized after 10 months of negotiations, which at times were tense.
In February, the automakers announced a framework agreement and had aimed to finalize the deal by March. The agreement involved Nissan taking up to a 15% stake in Renault’s new electric vehicle unit, Ampere, while Renault would reduce its 43% stake in Nissan.
However, the timeline for finalizing the deal was delayed due to challenges from senior Nissan executives and some directors. These challenges were related to the detailed provisions of the deal and the protection of Nissan’s intellectual property.
The delay highlights the complications arising from tensions within Nissan’s top management, as they strive to bring the long-standing alliance with Renault to a more balanced state. Following the removal of former Chairman Carlos Ghosn, Nissan executives have been working to rebalance the alliance.
Nissan has been working on defining a lower threshold for its strategic investment in Renault’s Ampere unit. While the initial target was a maximum of 15%, sources indicate that Nissan is likely to take less than 10% of the new unit.
The announcement of the finalized deal is expected in the coming days, according to sources. However, all individuals involved declined to be identified as the information is not yet public.
In a statement, Nissan stated that they are engaged in constructive negotiations with Renault and will make a statement when the agreements are concluded. Renault declined to comment on the matter.
Renault is seeking additional investors for Ampere, given the significant investment required for next-generation connected cars. Nissan and Mitsubishi Motors, Renault’s junior partner, have also expressed interest in investing in the company. U.S. chip giant Qualcomm has already committed to investing.
The possibility of additional partners has raised concerns for Nissan regarding the protection of its intellectual property in future collaborations.
Discussions have focused on how to handle future intellectual property, including technology that may not yet exist. Mitsubishi Motors stated that they are still considering investing in Ampere, but no decision has been made.
Meanwhile, Nissan’s board has been investigating a claim that Chief Executive Makoto Uchida conducted surveillance on his then-deputy, Ashwani Gupta. The alleged surveillance was reportedly carried out to gain leverage in removing Gupta from the company due to his opposition to certain terms of the new partnership with Renault. Gupta, who was seen as a potential CEO candidate for Nissan, left the company at the end of June.
The French automaker plans to list Ampere in an initial public offering in the first half of 2024, with the unit potentially being valued at up to 10 billion euros ($11.2 billion).
In conclusion, Nissan and Renault are expected to announce their restructured alliance in the coming days, marking the end of 10 months of negotiations. The deal involves Nissan taking a stake in Renault’s Ampere unit, while Renault reduces its stake in Nissan. However, challenges and concerns regarding intellectual property have caused delays in finalizing the agreement. Additional investors, including Nissan and Mitsubishi Motors, are being sought for Ampere. Meanwhile, Nissan’s board is investigating allegations of surveillance by its CEO, which led to the departure of a key executive.
