Nissan Motor is reportedly preparing to reduce its equity stake in long time alliance partner Renault, according to a report by the Nikkei. The move would align with the automaker’s strategy to reallocate capital toward new vehicle development amid a challenging global automotive landscape.
Currently holding a 15% stake in Renault, Nissan is considering selling approximately 5%, which could generate around 100 billion yen (roughly $640 million) based on current market valuations. This potential divestment follows a March agreement between the two companies to lower their mutual minimum shareholding thresholds from 15% to 10%.
Under the terms of their revised alliance, any share transactions must be coordinated and include a right of first refusal, ensuring both parties maintain strategic oversight. Ivan Espinosa, Nissan’s Chief Executive Officer, emphasized the company’s focus on product innovation. “We are bringing down our cross-shareholdings in order to invest in vehicles,” he told the Nikkei. Despite the potential sale, Nissan confirmed that its cooperative framework with Renault remains unchanged. In a statement, the company noted that while no final decision has been made, proceeds from any future share sale would likely be directed toward product development initiatives. The development comes as Renault faces its own leadership transition, with CEO Luca de Meo announcing his departure to pursue opportunities outside the automotive sector.