Renault is undertaking a complex two-pronged restructuring in addition to convincing Nissan to invest in a new electric car unit, called the Ampere.
At the same time, it also plans to sell off its petrol car business, called – Horse – by selling most of it to Geely.
Investors will learn the details of both sets of talks after Renault Group Chief Executive Luca de Meo delivers an update on the French carmaker’s strategy and financial outlook.
Nissan’s concerns are more focused on technology rights, as they are not willing to see technologies it developed in the hands of the Chinese automaker.
According to Reuters, the problem is that many Renault vehicles use Nissan engines or technologies. Nissan also employs some Renault engineering solutions in their I.C.E cars.
As an example, the Renault Koleos is powered by Nissan’s 2.5 litre QR25DE naturally-aspirated four-cylinder petrol engine
What may happen if Renault sells its Horse division to Geely is that Nissan may have to pay royalties to Geely to keep using the engines in its vehicles. There are even things both companies developed together for both of them to use, so it’s complicated when it comes to who owns what.
Talks between Renault and Nissan took place in Paris last week. However, Nissan’s concern over technology rights is also one of the reasons why it has yet to reach an initial agreement to invest in Ampere as they want the assurity that the use of technology for Ampere remains in the EV unit.
Photo credit: Italy 24 Press News
Plus, just like most Japanese automakers, EVs are not their main focus, but Renault is currently going a revolution called Renaulution, where it plans to go fully electric.
Only time will tell what the conclusion will be, but it looks like hard talks must take place between all companies to make things fair for all parties.
Renault has a 43 per cent stake in Nissan, while the Japanese automaker has a 15 per cent stake in Renault. However, now both parties are discussing the reduction of Renault’s stake in Nissan, potentially to a 15 per cent stake.