Earlier this month we relayed that Nissan’s Japanese arm were having concerns with the French government over its involvement in the running of Renault. Following which, the Board Directors of both Renault and Nissan met over the concerns they were facing and finally issued a statement on the 11th of December.
Carlos Ghosn, Chairman and Chief Executive Officer of the Renault-Nissan Alliance said, “Today was an important day for the future of the Renault-Nissan Alliance. After months of discussions, I am happy to say that an agreement has been reached that builds on our heritage and strong foundations to achieve further sustainable growth and success of the two partners. While there were important short-term issues to address, it was imperative that all involved took a long view.”
The agreement mentions that the French government’s double voting rights within Renault will continue till 1st April 2016; a contract between the French government and Renault caps the French government’s voting rights at 17.9 per cent. It has been decided that there will not be any enfranchisement of Nissan shares in Renault. In addition to this, a contract has been signed between Renault and Nissan to confirm that there will be no interference in Nissan’s governance by Renault.
Indian consumers have a taste of the Renault-Nissan alliance through the shared product portfolio which includes the Sunny, Scala, Terrano, Duster, Micra and the Pulse. In light of the current situation of the alliance, operations will continue as usual at the plant in Oragadam near Chennai.