Getty Images
Industryweek 9744 Renault
Industryweek 9744 Renault
Industryweek 9744 Renault
Industryweek 9744 Renault
Industryweek 9744 Renault

Renault Seeks to Ease Nissan Worries After Government Meddling

Nov. 6, 2015
The French state raised its stake in Renault to 19.7% this year, disturbing the fragile balance between the two companies and angering Renault-Nissan boss Carlos Ghosn.

PARIS—Renault's advisory board said Friday it wants to strengthen its alliance with Nissan after the Japanese carmaker voiced concern over the French government increasing its voting rights in Renault.

In a statement, Renault said it wanted to see a solution "reinforcing the alliance" with Nissan, with whom it has been linked for the past 16 years.

The 19-member advisory board said they had held talks with Renault's two main long-term shareholders, the French state and Nissan, to allay Japanese concerns.

The French state raised its stake in Renault to 19.7% this year, disturbing the fragile balance between the two companies and angering Renault-Nissan boss Carlos Ghosn.

That bolstered Paris' voting rights, effectively denying the Japanese company a say in how the business is operated.

It also prompted Nissan's chief competitive officer Hiroto Saikawa to say his company had expressed its concerns to both the French and Japanese governments.

Under a new French law, long-term investors in French companies automatically receive double voting rights unless two-thirds of shareholders are opposed.

French Economy Minister Emmanuel Macron denied Tuesday that there was any attempt from the French state to "destabilize" the alliance. He insisted the increase in the stake was temporary and Paris would reduce the holding soon.

Under the alliance agreement struck in 1999, Renault owns about 43% of Nissan. The latter in turn holds about 15% of the French's automaker's shares, but without voting rights.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Four Common OT Cybersecurity Pitfalls for Manufacturers

April 4, 2023
For the last six years, Dragos has leveraged their Professional Services team to develop an on-the-ground understanding of the realities facing the industrial community and to...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!