Renault, Nissan in talks over reorganization

A car-making alliance involving France's Renault SA, Japan's Nissan Motor Co. and Mitsubishi Motors Corp. said Monday that Renault and Nissan are engaged in talks while working to "drive structural improvements to ensure sustainable Alliance operations and governance."

The statement was, in effect, an admission that the two automakers are involved in reorganization talks, as reported by some news media. Renault is reportedly considering reducing its roughly 43 percent stake in the Japanese carmaker to 15 percent.

The three-way alliance said Renault and Nissan are engaged in "trustful discussions around several initiatives" as part of efforts to reinforce cooperation within the alliance, including the Japanese automaker possibly investing in a new Renault electric car entity.

An "agreement on a set of strategic common initiatives across markets, products and technologies" was also cited as an example of the initiatives under consideration.

Some media outlets, including The Wall Street Journal, have reported that the negotiations between the two sides include Nissan potentially joining a new EV unit Renault is creating in exchange for the French carmaker reducing its stake in the Japanese automaker.

Renault formed an alliance with Nissan in 1999 to rescue the then-struggling Japanese company through an equity partnership. Nissan holds a 15 percent interest in Renault.

© Kyodo News