After the eventful departure of former CEO Carlos Ghosn, new developments came to the fore in the Renault-Nissan-Mitsubishi alliance, in which the waves did not calm down.
According to the Financial Times, joint steps will be taken to bring the alliance, which has embarked on a new path after the management change at Renault and Nissan, on track.
Carlos Ghosn, the former CEO of Renault who was instrumental in founding the alliance, saved Nissan from bankruptcy with his actions in the early 2000s. In this regard, French Renault held a 43 percent stake in the Japanese manufacturer Nissan and Nissan held a 15 percent stake in Renault.
In the trial, which began after Carlos Ghosn was arrested in Tokyo in late 2018 on tax evasion allegations in 2018, Nissan management raised the question of restructuring its partnership with Renault from time to time, but the negotiations yielded no result.
So much so that in early 2020 the Nissan front came to the table for a split from Renault, claiming that Nissan was starting to see Renault as a liability to itself.
Various points such as the French state’s say in running the company as a shareholder of Renault, the shift in the balance of power between the two companies in Renault’s favor over the years, and the differences in corporate culture made Nissan uncomfortable from the start of the alliance.
With the complete restructuring of the alliance, the two car manufacturers are to take steps to carry out joint projects.
COULD HAVE $3.6 BILLION
It has been reported that Renault has pushed for a stake reduction to include Nissan in the new electric vehicle company it plans to launch in its body.
In this regard, it was noted that Nissan has also agreed to invest in the electric vehicle and software business that Renault will launch as part of a new strategy. However, it is stated that the Japanese company has no plans to invest in Renault’s internal combustion engine business.
According to sources close to the company, Nissan could also buy 15 percent of Renault’s new electric vehicle business, which Renault will announce next year.
It is reported that Renault will be able to manufacture the electric successor to the Nisan Micra in France once the deal is finalized.
Given Nissan’s current market value, the alliance’s restructuring is said to total $3.6 billion.
GO TO THE NEW STRATEGY
The Renault-Nissan-Mitsubishi alliance announced in May 2020 that it had moved to a new collaboration model that would support competition and profitability.
While it was noted that the alliance partners would benefit from the “leader-follower” principle in order to increase the efficiency and competitiveness of their products and technologies, it was reported that each of the alliance members would work to increase the partners’ competitiveness by being in are leaders in the regions where they are strong.
Under the new plan, Nissan will lead the alliance in China, North America and Japan, Renault in Europe, Russia, South America and North Africa, and Mitsubishi in ASEAN and Oceania.
On the other hand, after 2025, the renewal of the C-SUV segment will be led by Nissan, while Renault will lead the renewal of the B-SUV segment in Europe.
The plan by alliance founder and former CEO Carlos Ghosn to merge Renault and Nissan has been abandoned with the new plan, which is expected to reduce model investment costs by up to 40 percent.
2 CEOS CHANGED AFTER GHOSN
Carlos Ghosn, who pioneered the Renault-Nissan partnership in 1999, became both CEO and Chairman of the Board of Nissan in 2001. After that date, Ghosn bailed out the roughly $20 billion-indebted Nissan, turning it back to profitability and earning a well-deserved reputation in the auto industry.
In addition to his responsibilities at Nissan, Ghosn was appointed CEO of Renault in 2005 and chairman of the board in 2009.
But after Ghosn was fired from positions as chairman of both Renault and Nissan amid corruption allegations, the rails at both companies never came together.
The Japanese company also forced the new CEO to resign after it was revealed that Hiroto Saikawa, who was appointed Nissan CEO in place of Ghosn, made unfair profits less than a year after taking office. After Saikawa, Makato Uchida, who studied religion at the university, was appointed as the new CEO in order to restore the company’s seedy image.
On the Renault front, Thierry Bollore, Ghosn’s former right-hand man, took over as the new CEO in early 2019. However, Bollore was fired in October for taking steps that would jeopardize the future of the alliance with Nissan.
Clotilde Delbos, the French company’s CFO, temporarily took over the CEO seat, while Luca de Meo, the former CEO of Spanish automaker Seat, took office as Renault’s new CEO in July 2020. Statements at the time said that Luca de Meo, thanks to his previous Toyota experience, would benefit Renault to establish business relationships with the Japanese.
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