The Japanese carmaker Nissan wants more say in its alliance with Renault so will the Nissan and Renault standoff descend into a demolition derby?
Given the partnership’s unbalanced governance, Nissan’s best bet would be to seize shares in Renault to neutralise Renault’s controlling stake. The exit of Nissan Chairman Carlos Ghosn makes such a radical move easier, according to Reuters.
The scandal involving the Renault boss has aggravated an already uptight relationship. After two decades, the larger Japanese group seeks to renegotiate an alliance under which the two carmakers own stakes in each other and share costs.
The dilemma is that the French group holds the keys. Its 43% stake in Nissan is larger than Nissan’s 15% stake in Renault. Moreover, French rules governing how companies treat shares held by a subsidiary mean that because Renault owns more than 40% of Nissan, the Japanese group’s shares in Renault don’t carry any voting rights. It’s quite a conundrum.