A new era is dawning for the Franco-Japanese alliance of automakers Renault and Nissan, which yesterday agreed to restructure their 22-year partnership. Based on the sweeping changes, they will have equal participation in their alliance, while it also includes Japan’s Mitsubishi Motors with a smaller presence. It was the brainchild of former Renault boss Carlos Ghosn in 1999, who played the lead role. According to initial forecasts, Nissan received a 15% stake in Renault, which is equivalent to the share of the French state, but without voting rights. Instead, Renault, which had saved Nissan from bankruptcy at the time, owned 43% of the shares, giving the French a dominant role. And it is this role that has been the subject of intense friction between the two partners for many years, and Carlos Ghosn himself is now out of the picture and facing problems with justice. At the end of 2018, he was arrested in Japan on charges of managerial errors and financial irregularities, and was subsequently fired by the president of the alliance and fled to Lebanon.

The new form of automotive partnership is being announced after almost four months of intensive consultations, which well-informed sources told the Reuters news agency have been particularly difficult. And the reason was how intellectual property could be divided, because Renault was looking for connections with other companies outside of the bilateral Franco-Japanese alliance. Of course, it should be noted that the agreement reached requires the approval of the respective boards of directors of the companies. With what has been agreed, a French company from 43% to a Japanese company will now own 15%. The remaining 28% will be placed in a French trust, making the two companies more equal and equivalent.

Renault will now own 15% from 43%. The remaining 28% will be placed in a French trust.

After all, the long-standing imbalance between them and their unequal relationship has always caused tension in Nissan management. It is clear that although Renault, under the leadership of Carlos Ghosn, saved it more than 20 years ago, it is still smaller in terms of the number of cars sold. Under the new structure, the two companies will have a mutual stake of about 15%, which will give Nissan the opportunity to exercise the voting rights it has received that it did not have before. “The opportunity to exercise this right is welcomed from a corporate governance perspective and serves as a guarantee that the interests of both parties coincide,” said John Vidar, director of Pictet Asset Management for Southeast Asia. Finally, there is a clause in the contracts prohibiting the sale of shares for a specified period, as well as other relevant restrictions.