Nissan Motor is considering reducing its stake in long-time French partner Renault as part of a strategy to boost investment in new vehicle development, according to a report from the Nikkei business daily on Monday.
The move follows a broader restructuring of the Renault-Nissan alliance earlier this year, which included a mutual agreement to cut cross-shareholdings to 10% from 15%. Nissan currently owns 15% of Renault, and selling a 5% stake could raise about 100 billion yen ($640 million) based on current share prices.
“We are bringing down our cross-shareholdings in order to invest in vehicles,” Nissan CEO Ivan Espinosa was quoted as saying in the interview.
Any sale of shares would need to be coordinated with Renault, as per the agreement, which also includes a right of first refusal. Nissan emphasized that no final decision has been made. “Should a share sale be executed in the future, the proceeds are expected to be primarily allocated toward investments in product development. However, no definitive decisions have been made at this stage,” the company said in a statement.
The development comes amid broader leadership changes at Renault, with CEO Luca de Meo announcing plans to leave the company for a role outside the auto industry. The shift in cross-shareholdings and governance structures is part of an ongoing effort to rebalance the alliance, originally established over two decades ago.
Renault’s stake in Nissan is currently held in a French trust and has been gradually reduced since 2023, following the alliance overhaul that aimed to provide more parity between the two firms.