Nissan Motor Co’s discussions with Renault SA are centered on optimizing their investment in electric cars. They plan to strengthen their competitiveness as equal partners. This was announced by the Japanese automaker’s CEO Makoto Uchida.
People familiar with the talks say that negotiations with Renault have less than two weeks left to meet the automakers’ November 15 deadline for a deal. By the way, French carmaker Renault is also Nissan’s largest shareholder.
Nissan CEO Uchida did not comment publicly on whether a deal could be reached this month. However, he stated that he speaks with Renault CEO Luca de Meo every weekend. He added that the talks would be ongoing in the future.
The automakers said last month that they were discussing the future of their alliance. They allied in 1999 when Renault took a stake in Nissan. That’s how Renault helped drive the Japanese company’s turnaround under former executive-turned-fugitive Carlos Ghosn.
According to both companies, Nissan is considering investing in Renault’s planned electric vehicle unit.
Companies want to compete during a period of economic uncertainty
Nissan CEO Uchida also told the media today that the talks aim to improve automakers’ ability to compete during a period of economic uncertainty. He added that the car industry moves toward what he calls the industry’s biggest transformation in a century. Uchida was referring to the shift to electric vehicles.
As Uchida said, companies’ discussion is about how to increase their competitiveness in the first place and consider this major shift.
According to people familiar with the talks, the two parties have also discussed reducing Renault’s 43% stake in Nissan to 15%, and the terms under which that could happen.
Uchida told the media that Nissan and Renault want to be in an equal partnership. He added that an equal partnership would make sense and will certainly accelerate the collaboration between the parties.
Still, he did not mention any potential stake levels.
Ampere vs Horse
Renault is separating its electric vehicle business from its legacy internal combustion engine business. The code name of the electric cars branch of the company is “Ampere,” and the code name of the classic Renault car production is “Horse.” Renault is trying to catch up with U.S. rival Tesla Inc. in the shift to electric vehicles.
Separate from its discussions with Nissan, Renault has been in talks with Geely Automobile Holdings. The talks are about the Chinese automaker taking a stake in its internal combustion-engine unit. At least that is what people familiar with the discussions told the media.
Renault has manufacturing facilities in Spain, Portugal, Turkey, Romania, and Latin America.
Other partners are possible in the electric cars production venture
Nissan’s CEO Uchida stated that his company was aware of the transformation Renault was undergoing with the separation of its gasoline-car business. He added that fair treatment for Nissan as part of a new partnership is part of the discussion too. But, he made no specific mention of Geely.
Uchida said that they speak openly with Renault about any other possible partners. According to him, transparency is of critical importance.
Nissan, according to Uchida, is preparing for the possibility of a global recession. He said that the Japanese carmaker needs to anticipate many scenarios because that’s the only way to stay sustainable in the market.
Another source of concern for Nissan, Uchida said, is the yen’s depreciation to its lowest level in decades.