The Renault-Nissan Alliance, formerly known as the Renault-Nissan Alliance, is a French-Japanese strategic alliance between the automakers Nissan, headquartered in Yokohama, Japan, and Mitsubishi Motors, headquartered in Tokyo, Japan. Nissan, Nissan, and Mitsubishi Motors collectively sell more than 1 in 9 vehicles globally. Since 1999, Renault and Nissan have been strategic partners. Together, they manage eight key brands, including Renault, Nissan, Mitsubishi, Infiniti, Renault Samsung, Dacia, Alpine, and Venucia. The auto industry group, which produces the majority of light vehicles globally, sold 10.6 million vehicles in 2017. One year after Nissan purchased a controlling stake in Mitsubishi and subsequently became Mitsubishi an equal partner in the Alliance, the Alliance changed its name in September 2017.
The Alliance has sold more than 1 million light-duty electric vehicles globally since 2009, making it one of the top manufacturers of electric vehicles as of December 2021 [update]. The Nissan Leaf and Renault Zoe all-electric cars are the best-selling models in their EV lineup.
A merger or acquisition is not involved in the strategic cooperation between Renault, Nissan, and Mitsubishi. A cross-sharing arrangement ties the three businesses together. When the auto industry began to consolidate in the 1990s, this structure stood out. It later served as a model for General Motors, the PSA Group, Mitsubishi, the Volkswagen Group, and Suzuki, albeit the latter union was a failure. The Alliance has expanded significantly, establishing new alliances with automakers including China’s Dongfeng and Germany’s Daimler.
Press analysts have questioned the stability of the Alliance’s shareholding agreement as well as the Alliance’s long-term viability in the wake of Carlos Ghosn, the alliance’s chairman and CEO, being arrested, imprisoned, and fired from the alliance and all of its components in November 2018. Additionally, these analysts point out that because the recent business strategies of the corporations are intertwined, any attempts to restructure the Alliance may be detrimental to all of the members.
In This Article...
Who Owns Nissan?
a
Nissan is one of the top automakers, with 2.4 million vehicles produced year and a 6.2% global market share. But who is Nissan’s owner? Let’s investigate.
The Renault-Nissan-Mitsubishi Alliance owns Nissan. This intricate corporate arrangement is based on different share allocations, with Renault being the largest stakeholder and owning 43.4% of Nissan stock. At the same time, Daimler AG owns 3.32% of Nissan and Nissan owns 15% of Renault.
It is simple to understand why Nissan is a well-known automobile brand not only in the United States but also throughout the rest of the world. Even so, you might be curious in the beginnings of this illustrious brand. Its owner? Where was it produced? I’ll be looking into these issues and educating you about Nissan in this essay.
I reviewed several reliable websites, like ForbesA and the Economist, while conducting this investigation. This is to guarantee the veracity and accuracy of the information shown here.
Leader-follower
By sharing production in a so-called leader-follower arrangement, where one company leads for a certain type of vehicle and area and the others capitalize on the designs and manufacture, the alliance hopes to reduce costs.
Senard said that would contribute to cost reductions totaling 2 billion euros ($2.2 billion) on next compact sports utility vehicles (SUVs).
According to the new strategy, the partnership will produce seven models in Brazil as opposed to six models across four platforms, or basic vehicle architectures.
The alliance, whose most well-known vehicles include the Renault Clio compact hatchback, Nissan Rogue crossover SUV, and Mitsubishi Outlander SUV, would drastically cut the number of models it produces by 20% by 2025 from the current high of over 80.
However, several experts raised concerns about potential issues, pointing out that the three businesses were tied together in a partnership while some bigger competitors were not restricted by structural restrictions.
According to Chris Richter, senior research analyst at brokerage CLSA, “this approach has been devised to prevent stomping on each other’s toes, but there could be some efficiency losses, as there are boundaries they have to follow.”
Due to disparate corporate cultures and divergent viewpoints on organizational structure, Renault, Nissan, and junior member Mitsubishi, which joined the alliance in 2016, have in the past fought.
Nissan is 43% owned by Renault, whereas Nissan owns 15% of the French automaker but has no voting rights. Because Nissan executives believed Renault was not paying its fair part for the engineering work it performed in Japan, Nissan has rejected plans for a full-fledged merger.
SCALE
The partners stated that they intended to secure 220 gigawatt (GWh) hours of battery production capacity by 2030 to power the new EVs. By doing so, they would be able to produce batteries at a larger scale and cut costs in half by 2026 and by 65% by 2028. On how the capacity will be secured, they did not provide specifics.
Renault announced a five-year, 10 billion euro EV strategy in June, including plans to introduce 10 vehicles and reach a market share of 90% of EVs by 2030.
Nissan announced in November that it would invest 2 trillion yen ($17.6 billion) over five years in EVs and hybrid gasoline-electric vehicles to speed up the electrification of vehicles.
The third-largest automaker in Japan intends to release 23 electric vehicles by 2030, including 15 pure EVs. It has also stated that it plans to introduce possibly game-changing all solid-state batteries by March 2029 and cut the price of lithium-ion batteries by 65% in eight years.
Nissan announced on Thursday that it intended to switch out its Micra vehicle in Europe for a new EV based on one of the standard platforms.
A cross-shareholding arrangement keeps the three parties in the alliance together. Renault owns 43.4% of Nissan, which in turn holds a 15% non-voting position in the French automaker and a third of Mitsubishi Motors’ stock.
When asked if the partners might equalize the relationship by adjusting their interests, Senard declined to respond.
Financial markets have predicted a new structure. Since helping Nissan out two decades ago, Renault has held the top spot, but it is currently smaller in terms of sales than its Japanese partner.
Senard added, “Life is long, and we shouldn’t ever be impatient on that kind of subject.”
A Guide to Automobile Companies
The major automakers with present presences in the United States are listed below, along with the brands they sell.
BMW, Mini, and Rolls-Royce are all owned by BMW Group. Smart and Mercedes-Benz are owned by Daimler AG. Lincoln and Ford are owned by Ford Motor Co. Chevrolet, GMC, Buick, and Cadillac all belong to General Motors. Hummer is back as a GMC subsidiary brand. In order to co-develop EVs, GM and Honda have an official collaboration. Acura and Honda are owned by Honda Motor Co. It collaborates with GM. Sony Honda Mobility is the name of the electric vehicle firm they founded with Sony. Genesis, Hyundai, and Kia are all owned by Hyundai Motor Group. Mazda is owned by Mazda Motor Corp. Mitsubishi, Nissan, and Infiniti are all owned by the Renault-Nissan-Mitsubishi Alliance. Following the merger of Fiat Chrysler Automobiles and Peugeot S.A., a new company called Stellantis was created. According to the explanation, the word is derived from the Latin verb “stello,” which means “to dazzle with stars.” Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram are now under Stellantis and are FCA brands that are offered in the United States. Other Stellantis automobile brands include Citroen, DS Automobiles, Opel, Peugeot, and Vauxhall. Subaru is owned by Subaru Corp. Jaguar and Land Rover are owned by Tata Motors. Owned by Tesla. Lexus and Toyota are owned by Toyota Motor Corp. Additionally, it owns stock in Suzuki and Subaru. The automotive brand VinFast, along with VinHomes, VinBigData, VinBioCare, and VinBrain, are all owned by VinGroup. Audi, Bentley, Bugatti, Lamborghini, Porsche, Scout, and Volkswagen are all brands owned by Volkswagen AG. Volvo, Polestar, and Lotus are all brands owned by Zhejiang Geely Holding Group (ZGH).
The struggling Franco-Japanese auto industry union wants to try again.
A kinder, more cohesive society might result from THE PANDEMIC. Certainly, that has an impact on the alliance between Renault, Nissan, and Mitsubishi. While teetering on the verge of bankruptcy, it has been competing for the title of largest automaker in the world. The union declared on May 27 that, like a couple set to divorce rekindling old loves during lockdown, they would give it another go out of worry that covid-19 may irreparably harm some auto manufacturers.
In an effort to avoid the drawbacks of a complete merger, the alliance was established in 1999. When manufacturing cars, these had frequently resulted in tears. However, in particular, the cross-shareholdings that kept Renault and Nissan together generated resentment. Nissan is a Japanese company, while Renault, a French company, owns a controlling 43.4% of it. Nissan also holds a 15% non-voting share in Renault. The French government’s influence over Nissan, which recently accounted for the majority of the group’s revenues, was felt through a 15% investment in Renault. Joint projects were challenging to handle because the engineers from the three organizations rarely agreed. The end appeared imminent when Carlos Ghosn, the person in charge of the tie-up, was detained in Japan in 2018 on suspicion of financial malfeasance.
The new strategy both accelerates and stifles Mr. Ghosn’s aspirations. According to Jean-Dominique Senard, head of both the alliance and Renault, the ex-intentions boss’s for a merger are dead. His ambition to rule the world is also unsuccessful. The partnership would prioritize profitability over volume, a strategy that helped Renault’s French rival PSA Group turn things around. Each member will concentrate on becoming a regional force rather than a global one: Nissan in North America, China, and Japan; Mitsubishi in South-East Asia; Renault in Europe, Africa, and South America.
The three companies will save expenses by sharing parts rather than just platforms, which is the fundamental building block of automobiles. According to Mr. Senard, this innovative strategy will reduce the price of building a new small SUV by EUR2 billion ($2.2 billion). The partnership will become “the most powerful combination of corporations in the world” in a few years thanks to all of this, he claims. Investors enjoy the way it sounds. Nissan’s stock price rose 12.5% today, while Renault’s soared 17%.
The enthusiasm could be unfounded. The subsequent decline in the world auto market and the consequences of Mr. Ghosn’s incarceration have hurt the triumvirate. Now, the virus might reduce industry sales this year by 20%. Nissan announced its first financial deficit since 2009 on May 28th, reporting a Y=40.5bn ($372m) annual operating loss. Even worse is the state of Renault. France’s finance minister, Bruno Le Maire, warned that it might “disappear” without government assistance. Renault’s own dismal results may be accompanied by information of a EUR5 billion rescue plan, which is anticipated on May 29.
That annoys me. Nissan, which also announced it would eliminate facilities, cut back on its lineup of automobiles, and reduce production capacity by 20%. The same should be done by Renault, but in order to satisfy its major shareholder, plants must remain open in France. On July 1st, Luca de Meo assumes leadership of Renault after leading SEAT, a division of the Volkswagen Group in Germany, to success. To maintain peace, the former marketer will need to use all of his persuasive skills.
Kiss and make up was the headline of this item, which featured in the Business section of the print edition.
Nissan is it a part of Renault?
Nissan Motor Co., Ltd. is a Japanese multinational vehicle manufacturer with its headquarters in Nishi-ku, Yokohama, Japan. Its Japanese name is Ri Chan Zi Dong Che Zhu Shi Hui She and its Hepburn name is Nissan Jidosha kabushiki gaisha. Nissan, Infiniti, and Datsun are the brands under which the firm distributes its cars. Nismo is the name given to its own line of performance tuning goods, which also includes automobiles. The Nissan zaibatsu, today known as Nissan Group, is the organization’s first predecessor.
Since 1999, Nissan has collaborated with Mitsubishi Motors of Japan and Renault of France as a member of the Renault-Nissan-Mitsubishi Alliance (Mitsubishi joined in 2016). Nissan has a 15% non-voting share in Renault as of 2013, while Renault has a voting interest of 43.4% in Nissan. Nissan has owned a 34% controlling interest in Mitsubishi Motors since October 2016.
Nissan ranked after Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford as the world’s sixth-largest carmaker in 2013. The Renault-Nissan Alliance was the fourth-largest automaker in the world when taken as a whole. [Reference needed] The most popular Japanese brand in China, Russia, and Mexico was Nissan.
Nissan sold more than 320,000 all-electric vehicles globally as of April 2018, making it the top EV manufacturer in the world. The Nissan LEAF, which ranks as the second-best-selling electric car globally, just behind the Tesla Model 3, is the most popular model in the automaker’s entirely electric lineup.