[RahulNagaraj]

According to media reports, Renault is said to be looking to sell off its stake at Nissan. Renault currently owns a 43% stake in Nissan, which they could sell to help find their shift to electric vehicles.



Reports suggest that the move could raise billions of euros for the French carmaker, while also easing the long-standing tension between the alliance partners. Nissan themselves are interested in buying a part of the 1.83 billion shares owned by Renault. Although, the French carmaker is also looking at external acquirers to whom it can sell portions of its stake.

The sale of the Nissan stakes could financially help Renault undergo a major structural change, along with shifting its focus towards its future EV-only strategy. There are also reports that Renault could break up its company with a separate listing for its EV business. The legacy business could then enter a partnership with another carmaker.

Source: Automotive News

Link to Team-BHP news

[ads11]

Crikey, this is a big bit of news. If this goes ahead surely that's the death knell for the Alliance? I'm not even sure what the current state of play is wrt the management structure (I seem to remember in his own side of the story documentary Ghosn said that his plan was to create a group holding company with proportional voting rights to get around the Japanese suspicion about French governmental interference - little did that help him..).

The legacy business could then enter a partnership with another carmaker.

Given the French govt has a major stake in Renault, I wonder how that plays in as well with any Renault exit from the group alliance. With Macron back for another 5 years and his massively pro-EU bent, would there be a preference for the merger with another mostly European OEM?

Reports suggest that the move could raise billions of euros for the French carmaker, while also easing the long-standing tension between the alliance partners.

All well and good..

Although, the French carmaker is also looking at external acquirers to whom it can sell portions of its stake.

..this though seems to suggest there's no love lost between the French and Japanese sides. What a mess.

[Livnletcarsliv]

This is in fact a good and needed move for both the brands globally and specifically for India.
Finally, we will get true blue Nissan & Renault products in India (or at least potentially possible), in order to take on Toyota's monarchy in the high end and Korean monarchy in the low/medium end. And of course, this will also give more reliable and fun options in the 15L to 50L segment.

[Doge]

Originally Posted by Livnletcarsliv

This is in fact a good and needed move for both the brands globally and specifically for India.
Finally, we will get true blue Nissan & Renault products in India (or at least potentially possible), in order to take on Toyota's monarchy in the high end and Korean monarchy in the low/medium end. And of course, this will also give more reliable and fun options in the 15L to 50L segment.

I feel what would actually happen is they both or atleast one packs up and leave. Nissan’s haven’t been competitive for a while now global and they are far from their prime though they seem to be coming back. In India no ones going to beat Toyota in the utility sector, anyway Nissan’s despite the Japanese origin are no Toyota’s or even Honda’s in reliability, or haven’t been so since the early 2000s cost cutting era.
Having said that I agree it is a great move, I don’t understand why does Renault need Nissan anyway.

[GreasyCarb55]

Originally Posted by Livnletcarsliv

this will also give more reliable and fun options in the 15L to 50L segment.

As much as I want this to happen we have to ask the question, outside of developing new cars for India what cars do either of the manufacturers have in their respective global portfolio's that can make an impact in India?

On the french side of the equation I could see them relaunching the new generation of Renault Duster (which if executed well WITH a good diesel engine) will sell very well, the Twingo city car which has potential, the Dacia Sandero which will probably be launched under the Renault badge to avoid a Datsun/Nissan situation and the Dacia Logan/Renault Taliant.

But what do the Japs have to offer?

(Don't be fooled by the Twingo's picture, it's comparable to the Swift in all dimensions except length (it's shorter in length than the Swift by 10 inches)

[GTO]

"EV investment" is just a convenient excuse. If that was really it, both companies could jointly develop electric cars and enjoy huge cost savings. Rubbish.

Fact is, they've been headed for a divorce since a long time. Nissan's condition is weak and the company is in the doldrums = old product line, inconsistent management, weakening position in many big markets worldwide (including USA, China & Europe), unhappy dealers, quality issues and more.

Most importantly, the Renault & Nissan management no longer see eye to eye. The only glue keeping them together was Carlos Ghosn, but we all know how his career ended. Nissan didn't support the proposed merger with Chrysler either, which Renault was super keen on.

[AutoNoob]

Originally Posted by GTO

"EV investment" is just a convenient excuse...

Fact is, they've been headed for a divorce since a long time...

Most importantly, the Renault & Nissan management no longer see eye to eye. The only glue keeping them together was Carlos Ghosn, but we all know how his career ended.

True. And whatever way I see this, cashing out on Nissan stake will be a win for Renault while Nissan will further go down the rabbit hole.

At current price of ~500yen/ share, the 1.83 billion Nissan shares are worth more than $7 billion. Renault can really make good use of this and at the same time be free from a strained relationship.

Anyways, the stock has lost half of it's value since arrest of Carlos Ghosn.

[Livnletcarsliv]

So far this JV idea has never worked out for ever for any auto company across the globe. The JV or partnership is and should be time bound until the sharing and caring of whatsoever happens between two or more brands.

The relationship strain is another negative impact of the so called Globalisation where the one brand takes the jolly ride by swallowing the others(s).
What happens if there are only 5-6 brands (options) available across the globe after all these mergers/JV's/partnerships?

Every brand has its own strengths and weakness. Just through these so called partnerships, on the long run I feel that it's not possible to have the best of both worlds. However, one exception is the possibility of success for ever if the market segment is not the same. For eg - Suzuki should operate only in the 5L-20L segment and Toyota will operate only in the 15L+ segment. I am still skeptical as to how long this Baleno-Glanza and Brezza-Urban Cruiser combo will go without any hassles. Unfortunately, for Renault - Nissan, they were competing in the same segment.

[starke]

This move seems not to break the alliance, but let go of the final headache that Nissan was unhappy about.

Letting off the Nissan shares keeps Renault and Nissan equal to each not like the old days when Renault had more power in the alliance.

Of course, as per their recent announcement for 2030 alliance, they sure sticking their plan to make common platforms as well as powertrains

Originally Posted by GTO

"EV investment" is just a convenient excuse. If that was really it, both companies could jointly develop electric cars and enjoy huge cost savings. Rubbish.

Fact is, they've been headed for a divorce since a long time. Nissan's condition is weak and the company is in the doldrums = old product line, inconsistent management, weakening position in many big markets worldwide (including USA, China & Europe), unhappy dealers, quality issues and more.

Sorry to correct you here, but they are developing EVs together. Nissan Ariya and Renault Megane E-Tech are one of their flagship EVs that share lots of technology including platform and powertrain together. Not only that, Nissan is coming up with their own specific Gigafactory which is also first in UK partnering up with AESC (A battery company which they owned) and UK govt.

Coming to Nissan's current status, they did turn over a new page with their Nissan Next strategy. Updated and launched nearly 12 models globally and the new Rogue, Sentra & Pathfinder is doing well in US and adding the new Z sports coupe and Ariya will give them a good back from the weak position.

Again with their new strategy, as per their FY21 reports, they turned back to profit earlier than their forecast

https://global.nissannews.com/en/releases/211109-02-e

Rather than concluding the bad part, why can't we see this as two good old brands coming back again?

[ads11]

Originally Posted by GreasyCarb55

On the french side of the equation I could see them relaunching the new generation of Renault Duster (which if executed well WITH a good diesel engine) will sell very well, the Twingo city car which has potential, the Dacia Sandero which will probably be launched under the Renault badge to avoid a Datsun/Nissan situation and the Dacia Logan/Renault Taliant.

• New generation Duster would definitely find takers in our market given how strong the Duster badge is in India. It's quite incredible how Renault let such a strong foothold in a key segment just atrophy. But skipping to the current-gen could go some ways toward making amends.
  
  
• I adore the Twingo but I can't see it work here. It shares the rear engine platform with Smart. It would just be too unconventional for most Indian buyers and I worry they'd see the engine in the rear accessed under the boot as a Nano-connotation and that's a bit of a death knell.
  
  
• Sandero is such a sorted product in its current guise. It's a handsome hatchback as well. Would be great to see it, maybe even in its Sandero Cross guise. Gives them a C-SUV of sorts I suppose.
  
  
• The Logan/Taliant would be another interesting one but I given how slim the pickings are in the sedan segment, is that a risk worth taking for the Renault group? I mean for consumers ultimately more variety is only a good thing. I guess it depends on how much commonality is there in the platform for the Dacia products (Duster, Sandero and Taliant). Maybe they could take the punt then if all 3 share the platform. I'd feel potential volumes on the Duster alone could justify the business decision, especially if they can manage some decent sales on a Sandero Cross. Any Taliant sales would be a bonus and would give customers in the sedan space a different but welcome option in a barren field.

Originally Posted by starke

Rather than concluding the bad part, why can't we see this as two good old brands coming back again?

Maybe Renault divesting their share in Nissan is an olive branch? It's clear there's been a major schism between the French and Japanese over recent affairs. Fact that France has issued a warrant for Ghosn might be seen in a larger context as the French aligning finally with the Japanese. Perhaps this common ground beginning to form gives room for the moderates in the Alliance leadership to salvage things.

[GreasyCarb55]

Originally Posted by ads11

I'd feel potential volumes on the Duster alone could justify the business decision, especially if they can manage some decent sales on a Sandero Cross. Any Taliant sales would be a bonus and would give customers in the sedan space a different but welcome option in a barren field.

The Duster is gonna be the sure shot seller for Renault, It was still selling respectable numbers despite the strong Korean and Indian competition they had when the Duster was unfortunately discontinued. Although I will say that an updated K9K Diesel engine will further improve sales for them.

If they were to launch both the Sandero and Sandero Cross in India they would probably launch the Sandero as it is while making changes for the Sandero Cross as I don't think naming a CSUV after a sedan will work in India. Besides, India is a big enough market that a redesign to further distance the Sandero to the Sandero Cross would be feasible.

The Sandero hatch could be IMHO solidly placed against the Maruti Swift ,the Kiger would make it a little difficult to place the Sandero Cross in our market, they would either have to discontinue the Kiger or place the Sandero Cross as a little brother to the Duster against the likes of the Venue/Nexon/Sonet/Brezza.

[Reinhard]

I wonder how much money these carmakers throw down the drains for these whimsical mergers/partnerships and then splits.

Lots of money for the consulting, due diligencec actual organizational and share restructuring, jobs, branding, product realignments, factory re-tooling (optional) and so on. And then - an undo cost of all these steps - at much higher rate thanks to time linked inflation.

This is just so stupid! And big guys make millions for just making these rubbish decisions and walk away .

[nitkel]

Originally Posted by Reinhard

I wonder how much money these carmakers throw down the drains for these whimsical mergers/partnerships and then splits.
This is just so stupid! And big guys make millions for just making these rubbish decisions and walk away .

They have been in partnership since 1999. Enough time to recoup any investments through platform sharing, joint development and manufacturing.

Nissan always had a slightly weak identity, but it is now on the path to recovery through cars like the Qashqai, Ariya, new Micra and Z.

This is purely a managerial issue where Renault has a lot of influence on the strategic decisions of Nissan, hence the tussle to become separate entities while keeping the synergies intact which benefit both.

[volkman10]

Renault agrees to cut stake in Nissan to 15%.

Nissan set to invest in Renault's new electric vehicle company Ampere.

The restructured alliance, which has been in the works for nearly four months, will likely see Renault cut its stake in Nissan to around 15% from 43%, Reuters has reported, as well as seeing Nissan invest in the French automaker's new electric vehicle unit.

Renault is expected to transfer the 28% stake in Nissan, worth around $4.1 billion based on the current market value, to a trust.

It also highlights how the immense technological upheaval in the auto industry is forcing companies to both partner and compete with a dizzying number of newcomers and tech firms.

Renault, for instance, has said it will partner with companies from China's Geely Automobile Holdings to semiconductor giant Qualcomm Inc (QCOM.O).

The French company is separately working to finalise a deal with Geely and to bring Saudi Arabian state oil producer Aramco in as an investor and partner to develop gasoline engines and hybrid technologies.

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