BEIJING -- Nissan's concerns about technology transfers have complicated its partner Renault's plans to sell a large stake in its gasoline-engine business to China's Geely, three people familiar with the talks said.
Renault is pursuing a complex two-pronged restructuring. On one hand, it is aiming to revamp its alliance with Nissan and convince the Japanese automaker to invest in a new electric car unit called Ampere.
At the same time, it also plans to separate out its gasoline-car business, code-named "Horse," and is seeking to sell a large part of it to Geely.
Investors will be looking for details on the state of play for both sets of negotiations on Tuesday when Renault CEO Luca de Meo delivers an update on the French automaker’s strategy and financial projections.
Nissan's concerns about technology rights, which also extend to any potential investment in Ampere, suggest Renault will have to negotiate and potentially settle the deals in parallel.
Nissan wants to ensure that key internal-combustion and hybrid technology it owns is protected in any deal Renault strikes with Geely, two of the people said.
In addition, the separate question of potential technology transfers to a Chinese company needs to be treated cautiously, they said.
The sources were not authorized to speak to media and declined to be identified.
The three automakers declined to comment.