The Alliance announced the strengthening of a long cooperation, with a new long-term vision for India, increasing production and R&D activities, and transitioning to carbon-neutral manufacturing.
The partnership in India will bring a new line-up of vehicles to the market, and it is a major opportunity to boost the local economy and promote responsible business practices.
November 8, 2023, Boulogne-Billancourt (France) – Following the announcements made on February 6, 2023, and July 26, 2023, and after having obtained all required regulatory approvals, the New Alliance Agreement between Renault Group and Nissan comes today into force and replaces the former agreements governing the Alliance (namely, the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement and the Memorandum of Understanding of March 12, 2019).
As a result, Renault Group and Nissan now have a cross-shareholding of 15% with lock-up and standstill obligations.
Each of the partners is able to exercise the 15% voting rights attached to its own shareholding. The voting rights of Renault Group and Nissan are capped at 15% of the exercisable voting rights, and both companies are able to freely exercise their voting rights within such limit.
Renault has transferred 28.4% (out of 43.4%) of Nissan shares into a French trust, where the entrusted shares will be voted neutrally, subject to limited exceptions. Renault Group continues to fully benefit from the economic rights (dividends and proceeds of share sales) from the entrusted Nissan shares until such shares are sold. From now, Renault Group may instruct the trustee to sell the entrusted Nissan shares, but it has no obligation to do so within a specific pre-determined period of time. Renault Group has all flexibility to sell the Nissan shares held in the trust, within a coordinated and orderly process with Nissan, in which Nissan or a designated third party benefits from a right of first offer.
No impairment will be recorded in Renault Group’s financial statements as a result of the transfer by Renault Group of Nissan shares into the trust.
This next chapter of the Alliance will build on the foundations of the long-standing partnership and will maximize value creation for each Alliance member and lays the foundations for a new balanced, fair, and effective governance. The Alliance will continue to identify key projects across markets that aim to deliver win-win, large-scale and actionable benefits.
Jean-Dominique Senard, Chairman of the Alliance, said: “We are delighted to announce today the effectiveness of the New Alliance agreement signed on at the end of July 2023. This is a very important step for Renault Group, Nissan and Mitsubishi Motors, and lays the foundations for a new fair, long-standing and effective partnership that will create value for each Alliance member and for all our stakeholders.”
Makoto Uchida, President and CEO, Nissan Motor Co. Ltd., said: “Based on this equal footing, Nissan will continue to harness our core competencies and be more agile to explore further growth opportunities that support our business strategy, especially through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy, while continuing to generate greater value for the wider Alliance. We are convinced of the future prospects that will flow from our rebalanced partnership with Renault Group.”
Luca de Meo, CEO of Renault Group, said: “We are now effectively entering this new era of the Alliance with a pragmatic and business-oriented approach. Our joint projects in Europe, Latin America and India will strengthen our partnership and generate hundreds of millions of euros in value for each partner while being mutually beneficial in the field of innovation. We are also very proud to welcome Nissan and Mitsubishi Motors as strong partners in Ampere, our EV and software business, confirming the attractiveness of our assets. Finally, Renault Group will benefit from additional flexibility in its capital allocation policy with the potential monetization of Nissan shares.”
PARIS and YOKOHAMA (July 26, 2023) – Renault Group and Nissan Motor Co., Ltd today announced that they have entered into the definitive agreements contemplated by the binding framework agreement executed and announced on February 6, 2023. The transactions contemplated in these definitive agreements are subject to a limited number of conditions precedent, including regulatory approvals, and completion is expected to occur in the fourth quarter of 2023.
Jean-Dominique Senard, Chairman of The Alliance, said: “The agreements that have been signed today allow us to step into the next chapter of the Alliance. They strengthen our long-standing partnership and will maximize value creation for each Alliance member. This also lays the foundations for a new balanced, fair, and effective governance.”
Makoto Uchida, President and CEO, Nissan Motor Co. Ltd., said: “With the finalization of the definitive agreements, we have entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovations. This will create additional value through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy. The investment opportunity in Ampere complements and strengthens Nissan’s ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.”
Luca de Meo, CEO of Renault Group, said: “These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for Renault, Nissan, Mitsubishi and stakeholders. They give us the strategic agility that we need more than ever in today’s rapidly evolving environment. We are all engaged with the right mindset and welcome Nissan as a strong partner in our upcoming EV and Software pure player Ampere. It confirms the attractiveness of the project to be front runner in Europe, allowing Renault and its Alliance partners to position themselves ahead of the starting grid for the EV and software race in Europe.”
The agreements focus on extending the Alliance collaboration in three areas:
In the first area, the partners are considering new key projects in Latin America, India and Europe that aim to deliver win-win, large-scale and actionable benefits. Among these, Renault Group and Nissan have already announced their renewed commitment to Indian operations through new investment and vehicles.
In the second area of enhanced cooperation, the partners agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.
As part of this cooperation, Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group’s new EV and software entity in Europe. Accordingly, Nissan has committed to invest in Ampere up to Euro 600 million consistent with being a strategic investor in Ampere and securing a board seat. This investment opportunity aligns with Nissan’s electrification strategy, creating multiple potential benefits and synergies that complement Nissan’s own goals and initiatives in Europe and other potential markets.
The definitive agreements also formalize the rebalancing of the Renault Group-Nissan cross-shareholdings and the reinforcement of the governance of the Alliance. Renault Group and Nissan entered into a new Alliance agreement that will replace the current agreements governing the Alliance (namely, the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement and the Memorandum of Understanding of March 12, 2019).
As announced on February 6, 2023, Renault Group and Nissan will retain cross-shareholdings of 15% with lock-up and standstill obligations. Renault will transfer 28.4% of its Nissan shares into a French trust, where the entrusted shares will be voted neutrally, subject to limited exceptions. Renault Group would continue to fully benefit from the economic rights (dividends and proceeds of share sales) from the entrusted shares until such shares are sold. The transfer to the trust would trigger no impairment in Renault Group financial statements.
As a result of the transfer of the 28.4% of Nissan shares to the trust, Nissan would be able to exercise its voting rights attached to its shareholding in Renault Group. The voting rights of Renault Group and Nissan would be capped at 15% of the exercisable voting rights, with both companies able to freely exercise their voting rights within such limit.
Renault Group would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault Group, but it has no obligation to sell the shares within a specific pre-determined period of time. Renault Group would have full flexibility to sell the Nissan shares held in the trust, within a coordinated and orderly process with Nissan, in which Nissan would benefit from a right of first offer, to its or the benefit of a designated third party.
Chennai, Yokohama, Boulogne-Billancourt, February 13, 2023. Renault and Nissan have announced a new long-term vision for India, increasing production and R&D activities, introducing electric vehicles, and transitioning to carbon-neutral manufacturing.
From their base in Chennai, the companies will collaborate on six new production vehicles for domestic and international customers, including two new fully electric vehicles, uplifting the Renault-Nissan centre into an international export hub.
An initial investment of around $600m USD / ₹5300 bn INR is planned to support the new projects, which will see an up to 2,000 additional new jobs created at the Renault Nissan Technology & Business Centre in Chennai. At the same time, the RNAIPL factory will become carbon-neutral with a significant increase in renewable energy generation.
Following last week’s announcement of new high-value-creation operational projects for the Renault-Nissan-Mitsubishi Alliance, the future for Renault and Nissan’s Indian operations was outlined today at an official ceremony in Chennai by Nissan’s Director, Chief Operating Officer, Ashwani Gupta, alongside officials from the Tamil Nadu Government.
Guillaume Cartier, Chairperson for Nissan’s Africa, Middle East, India, Europe and Oceania region, said: “Renault and Nissan are fully committed to the Indian market, committed to electrifying the Indian market and committed to minimising our impact on the environment.
India was the first Alliance plant and India will be at the centre of this new chapter of the Alliance, with new vehicles, new R&D activities and new export markets taking our joint operations to the next level.
For the first time, the Nissan line-up in India will reflect our global power in high-quality SUVs and EVs, bringing greater value to our employees, customers and communities.”
François Provost, International Development & Partnerships Renault Group and Managing Director of Alliance Purchasing Organization, said: “India is a key market for Renault Group. Over the past 14 years, we have been developing the Renault Brand with our teams and dealers, up to reaching 100 thousand vehicles sold per year. India has also a key role in our R&D worldwide footprint. This project together with Nissan is a first concrete output of the new Alliance ambition released on February 6th.”
Mr. S Krishnan, Additional Chief Secretary, Industries, Government of Tamil Nadu, said: “The Renault-Nissan Alliance in Tamil Nadu has had manufacturing and design facilities operating in the State for more than 15 years now. This is a very valuable and important relationship for the Government of Tamil Nadu and the Alliance. It employs about 15,000 people directly in the State and has been one of the mainstays in ensuring that Tamil Nadu remains the automotive capital of India and an important hub for the manufacture of automobiles and auto components and automobile design as well. We are very excited about this new proposal of modernization and fresh investment by the Renault-Nissan Alliance in Tamil Nadu. This genuinely brings to life ‘Make in Tamil Nadu and Make in India for the World.“
The six new models will comprise of three for each company, engineered and built in Chennai. They will be built on common Alliance platforms while retaining the individual, distinctive styling of the respective brands.
They will include four new C-segment SUVs. Two new A-segment electric vehicles will be the first EVs for both Renault and Nissan in India, building on the heritage and expertise of both brands in mass-market electrification, which began with the Nissan LEAF and Renault Zoe more than a decade ago.
The new models will not only be aimed at Indian customers but will also signal a significant increase in exports from India, boosting plant utilisation to 80% and securing many thousands of jobs at the RNAIPL plant in Chennai for many years to come.
Complementing the additional production will be an increase in R&D and associated activities at the Renault Nissan Technology & Business Centre India, which is expected to create up to 2,000 new jobs at the site near Chennai, focusing on new Indian and international projects.
The RNAIPL plant, already one of the Alliance’s leading centres for energy and resource reduction, also is announcing its roadmap to carbon neutrality.
This will be achieved by 2045, through an ongoing programme to transition to 100% renewable energy, while reducing energy consumption at the plant by 50% compared to today.
Chennai Plant already sources more than 50% of its electricity from renewables, including solar, biomass and wind. The existing solar plant will become more than six times bigger, expanding to a 14MW plant from 2.2MW today.
As a consequence of the renewed commitment of both companies to the Indian market, Renault and Nissan are realigning their shareholding in their joint operations.
Under the new framework agreement, Renault Nissan Automotive India Private Ltd (RNAIPL) will move to an ownership of 51% Nissan – 49% Renault. Renault Nissan Technology Business Centre (RNTBCI) will move to an ownership of 51% Renault -49% Nissan. This reinforces the partnership for the long-term and will empower the joint ventures with more responsibility and more autonomy.
Nissan AMIEO Chairperson Cartier added: “Renault and Nissan have renewed their commitment to India today and we thank the Tamil Nadu Government for their strong partnership and support. I was extremely proud to be in Chennai to share the good news with the team. Their performance and competitiveness have given us the confidence to invest for the long-term.”
London, Paris, Tokyo, Yokohama – February 6, 2023 – Following approval by the Boards of Directors of Renault Group and Nissan Motor Co., Ltd, Renault-Nissan-Mitsubishi Alliance today announced new initiatives to take their partnership to the next level.
A three-dimension program to maximize value creation for all Alliance stakeholders will include:
Renault Group and Nissan have entered into a binding framework agreement regarding the above-mentioned transactions, with a view of reaching definitive agreements by the end of the first quarter of 2023. The transactions contemplated in these definitive agreements would be subject to a limited number of conditions precedent, including regulatory approvals, and completion is expected to occur in the fourth quarter of 2023.
This far-reaching program paves the way for a renewal and strengthening of the 24-year partnership, creating a new agile spirit and harnessing the pioneering technologies of all three Alliance members. This next level will create more growth opportunities and help secure operating efficiencies for each Alliance company to innovate and transform in the fast-changing market for automotive products and mobility services.
Details of the binding framework agreement will be announced during a joint conference today at 8.30 am GMT in London: https://www.youtube.com/watch?v=YJaOHCIg23g
After several months of constructive discussions with Nissan Motor Co., Ltd, Renault Group today announced that, subject to the approval of its board of directors, it has reached an important milestone in its discussions on defining new foundations for their partnership.
The ambition is to strengthen the ties of the Alliance and maximize value creation for all stakeholders with a three-stage approach:
The agreements are being finalized and the transaction remains subject to the approval of the boards of directors of Renault Group and Nissan.
The Alliance members plan to make an announcement immediately after the board approvals.
Press Release – Paris, Tokyo, Yokohama – October 10th, 2022
Renault Group and Nissan Motor Co are currently engaged in trustful discussions around several initiatives as part of continued efforts to reinforce the cooperation and the future of the Alliance.
The discussions include:
Any further communication will be done in due course by the Alliance members.
Ashwani Gupta has visited for the first time the Renault Group Refactory, the first European plant dedicated to the circular economy of mobility. The Refactory is emblematic of the Renaulution project, which commits Renault Group to a deep, quick and sustainable transformation, driven by value creation.
Welcomed by Jose Vicente de los Mozos, Executive Vice President Group Industry and Group Country Head Iberia, he discovered with three other executives of Nissan, the main operating activities of the plant: the second life of batteries, the refurbishing activities of used cars, the industrial innovation center and the digital control tower, the fuel cell assembly line of Hyvia as well as the remanufacturing center.
Ashwani Gupta was impressed to see how innovation in the Refactory had improved operational efficiency within the group but also had created new businesses in an environmentally and socially responsive way. He is confident it shall bring many new opportunities to work together within the Alliance.
Memorable moments with Takao Kato who test drove and discovered the future Renault Group line-up for the first time with Jean-Dominique Senard, Luca de Meo and the Group’s top management. A complete immersion in the Renaulution before the launch of two European Mitsubishi Motors models in 2023. Produced in Renault Group factories, the new ASX and the new COLT will be built-off of some Renault’s best-sellers and will use the CMF-B modular platform.
This gathering was also the opportunity to exchange on the different ongoing projects regarding the roll-out of the Alliance 2030 roadmap.
Ashwani Gupta has visited for the first time the Renault Group Refactory, the first European plant dedicated to the circular economy of mobility. The Refactory is emblematic of the Renaulution project, which commits Renault Group to a deep, quick and sustainable transformation, driven by value creation.
Welcomed by Jose Vicente de los Mozos, Executive Vice President Group Industry and Group Country Head Iberia, he discovered with three other executives of Nissan, the main operating activities of the plant: the second life of batteries, the refurbishing activities of used cars, the industrial innovation center and the digital control tower, the fuel cell assembly line of Hyvia as well as the remanufacturing center.
Ashwani Gupta was impressed to see how innovation in the Refactory had improved operational efficiency within the group but also had created new businesses in an environmentally and socially responsive way. He is confident it shall bring many new opportunities to work together within the Alliance.