Renault SA Chief Executive Officer Luca de Meo said talks to reboot a two-decade-old alliance with Japanese partner Nissan Motor Co. are continuing after the French carmaker moved ahead with plans to carve out its electric-vehicle business.
(Bloomberg) — Renault SA Chief Executive Officer Luca de Meo said talks to reboot a two-decade-old alliance with Japanese partner Nissan Motor Co.
are continuing after the French carmaker moved ahead with plans to carve out its electric-vehicle business.
Renault’s revamped strategy “works by itself,” De Meo said, but “beyond that, the alliance opens further opportunities,” the executive told investors at the company’s capital markets day in Paris on Tuesday.
The maker of Zoe and Megane E-Tech cars plans to boost profitability and reinstate its dividend as it proceeds with a complex split of its electric-vehicle and combustion-engine businesses, backed by outside investors.
Renault’s carve-out push has been at the heart of tense talks with its Japanese partner.
Nissan may invest $500 million to $750 million for a stake of about 15% in Renault’s carved-out EV business Ampere, but the agreement hinges on a wider deal that would see Renault lower its own 43% stake in Nissan to about 15% over time, people familiar with the situation have said.
The shift would alleviate a power imbalance that’s been a source of friction between the companies for years.
Despite Renault’s outsized stake, it’s the smaller of the two carmakers, with 2.7 million vehicle sales in 2021, compared with 4 million for Nissan.
Discussions with Nissan hit snags over intellectual property concerns, Bloomberg reported last week.
The valuation of Ampere has also been a sticking point, with Renault aiming for a roughly €10 billion level ahead of a potential IPO next year, according to a person familiar with the matter.
Nissan’s concerns mean it’s unlikely an agreement on the rebalancing will be announced as planned in mid-November, when directors from Renault, Nissan and Mitsubishi Motors Corp., the junior member of the three-way alliance, are scheduled to meet in Tokyo.
Renault has been “trying to make the proposal very attractive” for Nissan, De Meo said, in response to a question on whether the partner will invest in Ampere.
Renault Chairman Jean-Dominique Senard and Nissan’s top managers are “determined” to work with De Meo to “give the alliance a strong future,” the CEO said during the event.
“We are in a very positive dynamic, with a constructive mindset,” he said.
“That’s why we want to be all together to tell you more when we are ready in the weeks to come.”
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
