The Renault-Nissan Alliance may be on the verge of evolving. Renault CEO Carlos Ghosn says evolving the will be required to avoid future problems as the industry landscape changes.
Ghosn thought process is that the alliance was formed based on a specific set of circumstances and today those circumstances have changed. Ghosn discussed his thoughts on the alliance during a recent interview with BFM Business Television. The interview is airing just ahead of Renault’s annual shareholder meeting in Paris, where Ghosn is expected to be reappointed as CEO for another four year term.
Reports surfaced earlier this year suggesting Renault and Nissan were exploring the concept of a full merger of the two organizations. Executives of both companies pushed back at the idea, despite a merger allowing the two automakers to pool resources to electrify their lineups.
Right now the alliance structure is fairly complex. Renault owns 44 percent of Nissan, giving them voting rights with the company. Meanwhile, Nissan owns only 15 percent in smaller Renault and cannot vote on corporate matters. In 2016 Ghosn added Mitsubishi to the alliance.
The French government is Renault’s largest shareholder, owning 15 percent of its shares.
Ghosn ended his interview by saying the alliance does not have any short term issues, but he feels they need to begin to evolve to hedge future problems as the industry changes.