Nissan is developing separate growth plans in key areas such as software and electric vehicles as it works to finalize the terms of a severely limited partnership with Renault, according to seven people familiar with the strategy. Japan’s third-biggest automaker by sales is seeking a technology partner for its car cloud computing services that does not involve longtime ally France, two sources involved in the talks said, without specifying possible candidates. According to one of the sources, Nissan would thus correct one of its relative weaknesses in the field of “smarter and more connected” cars.
The Japanese group also plans to implement its own strategy for electric vehicles in the Asian and North American markets, the sources added.
Signing of the agreement scheduled for summer
These revelations come as the final agreements on the restructuring of the Renault-Nissan alliance founded more than twenty years earlier have not yet been signed. The aim was to close at the end of the first term, but talks are continuing and signing is now expected in the summer, sources say.
The agreements presented in February in London provide for a rebalancing of the alliance’s capital, with each partner at parity in capital and voting rights, at 15%. Nissan also plans to invest up to 15% in Renault’s future “Ampère” power entity as well. This rebalancing and the appearance of independent strategies with each partner -Nissan, but also Renault, which has multiplied its alliances with third parties in the last year, such as Google or Geely- reinforces the conviction of some, within the Japanese group, that the alliance he is at the end of his course and has had his day facing the main challenges that await him.
Enhanced cooperation in India and Latin America
The automotive sector is facing one of the greatest revolutions it has ever known, with the accelerated switch from gasoline to electric engines and global diplomatic and logistical tensions that are undermining its globalized economic model. While Nissan plans to continue sharing component purchases with its French partner, for example, it has no plans to bring engineering human resources to Ampère, two sources said. For another source, close to Renault, it is however the contribution in the form of equipment that constitutes a real guarantee of participation in Renault’s electrical projects, rather than a simple financial participation.
In a joint statement, Nissan and Renault said they were still working on the final terms of their new partnership that would make them more competitive. “The new structure allows for a faster and more flexible decision-making process,” the two groups added. They also recalled that they had decided to strengthen their cooperation in India and Latin America.
Limited operating stake in Ampère
Nissan’s “one-man” mentality could materialize in a long-term strategic plan likely to be announced by the end of the year, one of the sources said. This plan, aimed at improving the group’s operational performance, would also focus on electrification and software for autonomous driving and connectivity. “Even if Renault gets something from Nissan, going in another direction has tangible benefits,” said a second person familiar with Nissan’s position.
“Renault’s restrictions have been lifted, we can move forward freely.”
Renault and Nissan added in their statement that Nissan’s investment in Ampère would strengthen the Japanese group in Europe and “accelerate new activities”, without elaborating. One of the sources specified that Nissan will invest in the entity and provide it with technologies, but that its operational participation will remain limited. If Ampère were to develop technologies of interest to it for Europe, Nissan would look at them, but with a view to purchasing them separately, he added.
Questions about after 2026
Renault, Nissan and Mitsubishi will have no less than 80% of their vehicles based on common alliance platforms by 2026, but the question remains about the projects currently under study that will materialize beyond this horizon. Whether exploring new areas or pursuing existing areas of cooperation. According to the sources, Nissan is taking special care to protect the future use of technologies developed in solid-state batteries, which it is testing on behalf of the alliance, as well as its developments in driving aids. And although the Japanese group today largely uses the electrical and electronic architectures developed by Renault for the alliance, we do not know what use it will make of the future architectures defined around software (full software deveded Vehicles) in which its partner French is working with Google. .
The feeling of freedom found within Nissan marks a halt to dreams of greater integration cherished since the days of Carlos Ghosn, the former CEO of Renault and Nissan until his arrest in Japan and his escape to Lebanon. His misfortune followed allegations of financial improprieties, but the alliance’s historical architect said he was the victim of a plot inside Nissan to block a merger.
In the Japanese pool, some were not even satisfied with the rebalancing announced at the beginning of 2023 and yet long requested. Various sources have said that the best outcome would have been a “zero percent-zero percent” rebalancing, though they acknowledged that this goal could not be achieved at this stage.
Source: BFM TV
