Big news has happened with the large merger that took place between Nissan and Renault. Renault has been asked to remove their shares down to 5 to 10 percent from 43.4 percent stake. The future of both brands will rest with new partners, should either brand want to keep its expanded platform. Nissan’s senior vice-president Hari Nada said via an e-mail that his view was different than Director Masakazu Toyoda. What will happen between these massive companies and what does it mean for customers around the world? Let’s examine the current state of these brands and their future together.

Into the Complication Relationship Between Nissan and Renault

Adding more to the discussions between Renault and Nissan was Nissan Director Masakazu Toyoda. Toyoda feels the two sides should have a joint venture, but there remains an obvious disagreement between the companies. The alliance with Renault and Nissan has been hindered by Renault’s 15 percent shareholder, the French government. Nissan hopes to have 20-25% of the stake in the company, but the French Renault wants to hold up to 35%. Former CEO Carlos Ghosn helped lead the merger when the alliance was formed but was forced out of Nissan. Between the disagreement on the total percentage of shares and the changes, this has caused tension. The French government believes that Nissan hasn’t been completely on board. Will Renault now look to add FCA and work together to form the third-largest automotive company?

“This isn’t a reboot of the relationship - more the first stages of a divorce,” said David Fickling of Bloomberg

Nissan Focused On Turning Things Around

Nissan is currently looking at how to regain their sales around the world as they were 8% lower in their second-quarter sales versus this time last year. Particularly in North America, one of their largest markets. They have plans to narrow up to 10% of their workforce by March 2023 in an effort to redirect their energies towards running a more streamlined operation. They will cut down their vehicle production line by 600,000 vehicles over their 14 plants through the fiscal 2022 year. The plan is to have 6.6 million years made each year, which allows for growth. Last year, Nissan sold around 5.5 million vehicles. Nissan CEO Hiroto Saikawa added some takes on the process going forward. 

“We have already begun stopping production lines and making job cuts at eight of our operation points. We will endeavor to restore earning in two years,” said Saikawa.

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