Nissan Motor is reportedly planning to reduce its ownership stake in longtime French partner Renault to redirect funds toward the development of new vehicles.
In an interview with Nikkei, Nissan CEO Ivan Espinosa confirmed that the Japanese automaker plans to lower its stake in French alliance partner Renault from 15% to 10%. The decision follows updated alliance terms introduced earlier this year, allowing for reduced cross-shareholding. According to Reuters, the sale of the 5% stake could bring in approximately ¥100 billion (about $640 million), which Nissan is expected to channel into new vehicle development.
Nissan plans to reinvest proceeds from its reduced stake in Renault to vehicle production as part of a wider strategy to tackle rising costs and intensifying global competition.
In March, Renault and Nissan agreed to reduce the cross-shareholdings from 15% to 10% each to rebalance the alliance on more equal terms. As part of the revised arrangement, any share sale must be coordinated with the other party and is subject to a right of first refusal.
Renault has already transferred its stake in Nissan to a French trust and has been gradually reducing it since 2023. In contrast, Nissan still holds a 15% stake in Renault. This restructuring signals a move toward a more flexible and independent partnership between the two automakers.
After taking office in April, Ivan Espinosa introduced a new business strategy called ‘Re: Nissan,’ targeting a leaner global footprint. The plan includes cutting 20,000 jobs and scaling back the number of vehicle assembly plants from 17 to 10 by March 2028. This bold restructuring move stems from a net loss of Â¥670.8 billion (approximately $4.6 billion) for the fiscal year ending March 2025.
Nissan has recently been divesting assets in an effort to return to profitability. The company is aiming to raise up to ¥1 trillion (approximately $7 billion) through a mix of corporate bond issuances and asset sales to meet upcoming bond repayments and cover restructuring costs.
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