Nissan, Renault agree deal to overhaul alliance
STORY: Renault and Nissan have struck a deal to revamp their two-decade-old alliance.
The agreement will put the pair on an equal footing, and see Nissan invest in Renault’s new electric vehicle business.
The announcement came after nearly four months of intense talks.
Sources told Reuters that intellectual property was among the biggest stumbling blocks.
Under the new deal Renault will reduce its stake in Nissan from 43% to 15%.
That resolves a major issue for the Japanese side.
They felt the French firm had far too much sway over Nissan, which actually makes more cars.
The pact will also see the two companies pool more resources for key projects in Latin America, India and Europe.
Analysts say it’s more evidence of how technological upheaval is reshaping the automotive industry.
Renault has already struck other partnerships with firms including Chinese rival Geely and chipmaker Qualcomm.
It’s also working on a deal to bring in Saudi oil giant Aramco as an investor.
Renault shares have jumped by around a quarter since talks on the alliance were first announced in October.
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