Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Renault committed to stronger alliance with Nissan, chairman says
      Stellantis has positive stock market debut after FCA-PSA merger
      Audi idles 10,000 staff on chip shortage
      Spotlight will find low-key Tavares as he takes over new empire at Stellantis
    • Stellantis has positive stock market debut after FCA-PSA merger
      Audi idles 10,000 staff on chip shortage
      Fiat Chrysler and PSA complete merger to become Stellantis
      Dacia-Lada business unit will unleash brands' power, Renault execs say
    • Ford, Audi, Daimler reduce German output on chip supply shortages
      Airline chief to head Swedish bearings maker SKF
      Nvidia CEO says software will soon define the car, drive profit
      LG Magna-MAIN_i.jpg
      At CES, Magna touts new deal with LG
    • Dacia-Lada business unit will unleash brands' power, Renault execs say
      Renault to follow Peugeot, VW in seeking higher transaction prices
      Renault to boost low-volume Alpine brand with 3 EVs
      view gallery
      8 photos
      Dacia Bigster
    • Mercedes badge_1.jpg
      Mercedes meets European CO2 target with late-year surge in EV sales
      EV-only future looks closer than ever in Europe
      VW to link bonuses to social targets
      New EU 'green-washing' rules will force automakers to be transparent
    • Stellantis seeking new joint venture in China, reports say
      Russia's new-car sales fall 2% in December
      FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
      Benz plant in Beijing.jpg
      Mercedes, Audi, BMW post record China deliveries
    • Renault names motorcycle team boss Brivio to lead Alpine F1 team
      Airline chief to head Swedish bearings maker SKF
      Renault names former Google exec to run Alpine brand
      Bentley's top designer, Sielaff, to leave; may join Geely
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Supplier Spotlight
    • Focus on Electrification
    • Latest Launches
    • Analyst's View
    • Segment Analysis
    • Europe By The Numbers
    • EV-only future looks closer than ever in Europe
      European car retailing poised for shake-up as 'agency' model gains support
      How Europe will become an EV battery powerhouse
      VW, Ford stumbles force rethink of how to best use social media
    • Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
      Renault CEO outlines ambitious revival plan
      Why Rolls-Royce boss expects to be profitable despite COVID
    • Veoneer boss expects to reach key milestone this quarter
      How Faurecia aims to become a hydrogen leader
      How Yanfeng gave the car interior a brain
      FCA suppliers in Europe at risk from switch to PSA platform, experts say
    • Chinese EV maker Xpeng outlines Europe rollout plan
      Arrival Van.jpg
      How Arrival intends to disrupt the delivery van market
      Polestar 2's performance, convenience offset range anxiety
      Nio ET7-MAIN.jpg
      Nio debuts first electric sedan
    • BENTAYGAHYBRID-MAIN_i.jpg
      Bentley freshens Bentayga Hybrid
      BMW 4-Series Coupe breaks free from sedan sibling
      Hyundai counts on new Tucson to become its Europe top-seller
      Dacia turns to familiar playbook for all-new Sandero
    • Pandemic forces automakers to focus on brand, conserve cash
      Why prospects for dealer mergers have improved
      Dacia-level price discipline needed to end margin slump in Europe, expert says
      How infotainment systems are taking over the vehicle cockpit
    • Wagons hold market share, but costly EV shift looms
      Electrification gains speed in Europe's key compact segment
      Hybrids beat the market; sales expected to top 1 million in 2022
      Plug-in hybrids set for rapid rise but trouble looms
    • Russia's new-car sales fall 2% in December
      Europe sales by model, Nov. and 11 months: Audi A3, Jeep Compass rise; Toyota Yaris surprises
      Top 10 sellers by market, 11 months: Skoda a top 5-seller in 13 countries
      Russia's new-car sales rise for second straight month
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Polestar 2's performance, convenience offset range anxiety
      Bosch, Continental battle to supply the brain of the connected car
      Why the ID5 is VW's true rival to the Tesla Model Y
      Volvo, Daimler CEOs praised for leading push to computerize cars
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • view gallery
      8 photos
      Dacia Bigster
      view gallery
      8 photos
      Renault 5 concept
      view gallery
      15 photos
      Toyota Mirai 2021
      view gallery
      10 photos
      Fiat Tipo Cross
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      9 photos
      Seat Tarraco
      view gallery
      7 photos
      Toyota Corolla station wagon
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
November 05, 2001 12:00 AM

Renault stays firmly in control of Nissan

Sylviane de Saint-Seine
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Forget all the talk about a more balanced relationship between Renault and Nissan. The recent equity reshuffle between the two carmakers and their new joint management structure will leave Renault's commanding position within the alliance undiluted.

    The two companies presented the changes to their initial March 1999 accord as a reward to Nissan employees for their contribution to the Japanese carmaker's recovery, and as a step toward more efficient cooperation.

    From the beginning, when Renault came to the rescue of financially troubled Nissan, Nissan Chairman Yoshikazu Hanawa said the alliance would develop into a 'balanced partnership.'

    Renault Chairman Louis Schweitzer and Nissan CEO Carlos Ghosn concurred.

    Indeed, Ghosn insisted the motivation of Nissan employees was a key reason behind the changes - notably the 15 percent stake Nissan is taking in Renault.

    But a closer look at the new structure leaves many observers puzzled.

    'The combination between the two companies makes a lot of sense, but it's not particularly clear how the latest changes mark an improvement,' said Jim Collins, an analyst with UBS Warburg in London.

    Take Renault Nissan BV, or RN BV, the new equally owned management entity set up in the Netherlands. The French company's chairman has, by right, the deciding vote within the eight-member structure. Schweitzer also ruled out any prospect of rotating the RN BV presidency between Renault and Nissan. Finally, he reaffirmed his opposition to any thought of merger between the two companies saying it would be artificial and would cut them off from their national roots.

    Analysts say it is not clear how RN BV will be more efficient than the alliance's current governing body, known as the Global Alliance Committee.

    RN BV has 'sole responsibility for mid- and long-term planning, commonality in products and powertrains, and on principles of financial policy,' Renault and Nissan said.

    But analysts wondered why the development of engines and gearboxes required the creation of an entirely new legal structure based in the Netherlands. The country is more known for a tax regime that is friendly to large foreign companies.

    Another case in point is the 15 percent stake Nissan is taking in Renault, presented as a milestone in their relationship. The stake will be devoid of voting rights, making it a purely symbolic move. Besides, Schweitzer said an increase in Nissan's equity in Renault was not on the agenda.

    Trap for predators

    Moreover, Nissan's stake in Renault will be offset by the increase of Renault's shareholding in Nissan, from 36.8 percent to 44.4 percent. This will be done through the exercise of warrants Renault took when rescuing Nissan back in 1999. Some of those warrants were not supposed to be exercised before June 2003 and June 2004.

    'It is very hard to understand why Renault has chosen to exercise its warrants now,' said Gianluca Pediconi at CSFB in London.

    Because Renault's additional stake in Nissan - at today's share price and exchange rates -costs more than Nissan's 15 percent stake in Renault, the French carmaker will have to make up the difference by raising money on Tokyo's capital markets.

    Even though Japanese interest rates are low, news of Renault adding E500 million to its debt is hardly pleasing for investors.

    One of the most novel features in the new arrangement is a trap for potential corporate predators. Under Dutch law, RN BV can be linked with a special foundation that will have the power to thwart an unsolicited takeover bid.

    This 'poison pill' will be useful since the French government is using the Renault-Nissan share reshuffle to slash its 44.2 percent shareholding to 25 percent when market conditions are right.

    At today's share price, the French government would receive about E1.2 billion for its Renault stake.

    Louis Schweitzer had already mapped out the French state's future role within Renault. He said: 'I see it as a stable shareholder, a bit like the state of Lower Saxony with Volkswagen.'

    RECOMMENDED FOR YOU
    2020 Eurostar winner Frank Bekemeier
    Recommended for You
    2020 Eurostar winner Frank Bekemeier
    2020 Eurostar winner Frank Bekemeier
    2020 Eurostar winner Jürgen Weissinger
    2020 Eurostar winner Jürgen Weissinger
    2020 Eurostar winner Nicolas Racquet
    2020 Eurostar winner Nicolas Racquet
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Supplier Spotlight
      • Focus on Electrification
      • Latest Launches
      • Analyst's View
      • Segment Analysis
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us