Renault may reduce Nissan shares to fund EV shift

The shift to an all-electric car market seems to be inevitable at this point as automakers have started to roll out their electrified plans. This is why Renault is finding ways to adapt to the electric vehicle (EV) transformation in the industry. And one of the considerations is reducing its shares in alliance partner Nissan.

Renault wants to develop its EV lineup by reducing shares in Nissan

In a report by Bloomberg, that move could raise billions of euros which Renault can use to develop its electrified lineup. The French automaker is looking to separate its EV business from the Alliance, which will result in finding other associates. Geely is currently the automaker that is seen as the potential partner.

Earlier this year, Renault teamed up with Geely to support the expansion of the Chinese marque’s business network in South Korea through Renault-Samsung Motors (RSM). Geely has rolled out many efforts to develop its EV technology, which can help transform Renault’s EV lineup if the partnership ever comes to pass.

Currently, Renault owns around 1.8 billion Nissan shares, which translates to about 43 percent of its Japanese automaker ally. This gives Renault extensive voting rights, an asset that Nissan doesn’t have as it only has 15 percent of the French marque. It is a pain point for factions of Nissan executives going back years.

The said move was reported after the Alliance's plans to jointly develop EVs

Nissan may be willing to buy some of the said 1.8 billion shares that Renault owns. But the latter may still be seeking other acquirers for a portion of its 43 percent share in Nissan. This increased the tension between the concerned parties within the Alliance which was initially stirred by the 2018 arrest of ex-Nissan Chairman Carlos Ghosn.

The tension is further intensified as the Renault-Nissan-Mitsubishi Alliance already vowed to introduce 35 new EVs by 2030. It complicates Renault’s plan of looking for other partners in developing its EV business moving forward.

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