Renault and Nissan ease ties to boost Japanese firm’s recovery

“Nissan is committed to preserving the value and benefits of our strategic partnership within the alliance while implementing turnaround measures to enhance efficiencies,” said incoming CEO Espinosa.

Espinosa, previously Nissan’s chief planning officer, was appointed in early March to succeed Makoto Uchida, after deteriorating results at Japan’s third-largest carmaker and unsuccessful negotiations for a merger with Honda .

Nissan, in which Renault is the largest shareholder with 17.05% of the capital held directly, has been plagued for years by declining sales. It has struggled to recover from the downfall of former boss Carlos Ghosn, architect of the Renault-Nissan alliance, who was accused by the Tokyo prosecutor’s office of financial misconduct, which he denies.

Renault confirmed its forecast of free cash flow of at least €2bn (R39.88bn) in 2025, despite an impact of about €200m (R3.98bn) from acquiring Nissan’s stake in the Indian business.

“The decision today gives Nissan additional flexibility, which would be the possibility for Nissan to sell assets and increase their cash position,” Renault CFO Duncan Minto told journalists. He said having such ability would help Nissan restructure.

The amendment to the alliance agreement, which in 2023 established a rebalancing of cross-shareholdings, and the termination of Nissan’s investment agreement in Ampere, are subject to certain preconditions being fulfilled, expected by the end of May, the companies said.