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
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • 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
  • Europe By The Numbers
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
January 13, 2020 05:27 AM

Nissan examines split from Renault, reports say

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Nissan has stepped up contingency planning for a possible split from Renault, according to the Financial Times, which cited people familiar with the matter.

    The plans include Nissan going it alone in engineering and manufacturing, as well as changes to Nissan's board, the paper reported on Sunday.

    Nissan has accelerated the planning since its former Chairman Carlos Ghosn fled from Japan where he was on bail accused of financial crimes to his former childhood home of Lebanon, the paper reported.

    Bloomberg also reported that Nissan executives have examined the possibility of breaking away from Renault amid concerns that relations with the longtime French partner have turned dysfunctional.

    Since last year, Nissan has been exploring the pros and cons of sustaining the alliance, particularly when it comes to engineering and technology sharing, a person familiar with the matter told Bloomberg. Those studies predate Ghosn’s escape from Japan and were preliminary, so no decision has been made, the person said.

    It’s unclear how feasible any separation would be given that Renault is Nissan’s biggest shareholder and the French partner has been pushing for a repair of ties.

    Key to the partnership's survival is reviving plans this year for new joint industrial projects, which sources said have stalled as the scandal engulfed the companies.

    The companies are trying to forge solutions to problems with their long-standing partnership, and launch new joint industrial projects, people familiar with the situation said. So far, those efforts haven't produced visible results.

    "The problem is today, there's nothing concrete as we look ahead, no goals," a former senior employee at Renault said.

    Some developments set in motion during the Ghosn era are due to come to fruition in 2020. Nissan's crossover electric car, based on its Ariya concept model, will be the first to launch on the two automakers' new joint electric platform, and in 2021 a Renault equivalent should also take shape.

    Renault Chairman Jean-Dominique held doubts about the partnership enduring when he replaced Ghosn. In a French radio channel interview in November, Senard gave Renault and Nissan just months to amend the union. "If in 2020 we don't extract the whole virtuous potential of this alliance, I will consider that I and my teams have failed," he said.

    Senard is due to announce several combined projects for the alliance in coming weeks. Nissan’s recently appointed CEO Makoto Uchida has been working closely with Senard on these new projects, Bloomberg said. But even during the Ghosn era, according to people close to Nissan, some engineers were not happy about Ghosn’s push to combine engineering and manufacturing.

    Ghosn led Nissan back from the brink following its rescue by Renault in 1999 and held the alliance together as head of both companies. His shock arrest in Tokyo in November 2018 threw the automakers into disarray and brought infighting between Renault and Nissan into the open.

    In a press conference in Beirut last week Ghosn said: "What we see today is a masquerade of an alliance that obviously with all the people involved is not going to go anywhere."

    Nissan's partnership with Renault has now become toxic, with many senior Nissan executives now believing the French automaker is a drag on its Japanese counterpart, sources told the Financial Times. Both automakers would likely seek new partners in the event of a full split, the paper said.

    Technology tensions

    Relations soured following Ghosn's arrest, but the roots behind the tensions go back years.

    A major sticking point since 2015 has been the equal division of costs for r&d into new technology and products, two sources close to Nissan said.

    That strategy "did not compensate Nissan's work properly: Nissan's engineering output was 40 percent better, meaning Nissan engineers on average produced 40 percent more than their Renault counterparts in a given amount of time spent on a job," said one of the sources.

    "When measured more strictly, Nissan's output in some cases was double Renault's," he said.

    Nissan has asked for an analysis of the workloads and productivity of Renault and Nissan staffs, one person familiar with the situation said.

    Since Ghosn’s downfall, the two automakers have struggled financially — their shares were the two worst performers among major automakers last year — and drifted apart at a time when the costs of electrification and autonomous driving are pressuring incumbent automakers to team up or consolidate.

    Nissan did not immediately respond to a request for comment on Monday, a holiday in Japan. Renault declined to comment.

    Bloomberg and Reuters contributed to this report

    RECOMMENDED FOR YOU
    Renault ends common purchasing agreement with Nissan
    Recommended for You
    Nissan Renault alliance
    Renault ends common purchasing agreement with Nissan
    Seat Cupra Born Zwickau 2022
    VW to cut production of two EV models due to weaker demand
    Tesla's Shanghai factory
    Tesla, BMW, Renault exports from China are part of EU anti-subsidy probe
    Main Image Cars
    Sponsored Content: Driving the future of mobility with SenseAuto: The AGI Power Behind the Wheels
    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
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • 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
    • Europe By The Numbers
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us