Renault is quietly evaluating a potential reduction of its role within the Renault-Nissan-Mitsubishi Alliance. The alliance, a cornerstone of Franco-Japanese automotive collaboration, faces a fresh moment of recalibration as electrification becomes the dominant strategic driver. After restructuring the partnership in 2020 to reaffirm each company’s commitment and to move past a major leadership crisis, the focus now shifts to how the electrified future will realign power, influence, and shared investments among the three automakers.
The French group is pursuing more than just capital to finance an ambitious electrification plan. It seeks a clearer split between electric vehicle programs and traditional internal combustion engine work. While Japan may view this strategy with skepticism, France sees benefits in attracting new partners and spreading the costs associated with the combustion vehicle division. Potential investors, including Geely and Aramco, have shown interest in joining the division as it undergoes diversification, bringing in fresh capital and shared risk for the project’s next phase.
The contemplated sale of a substantial stake in Nissan, valued at around 6.1 billion euros, would shift the balance of influence within the alliance. The proposed reshaping would reduce Renault’s weight and recalibrate control, since Nissan currently holds a significant stake that would be adjusted through cross-ownership arrangements. Renault’s overall stake would also be affected, influencing the financial and strategic leverage each party retains in the broader corporate structure.
France must approve the operation
Reportedly, Renault emphasizes that no binding decision has been made. Company executives from both sides are examining the best course to secure a sustainable future for the alliance. A joint statement from Renault and Nissan indicates that any future communications will be shared when an appropriate time arrives. The overarching aim is to preserve the operational integrity and collaborative governance that has underpinned the alliance for years.
Should the sale of shares be deemed the most prudent path forward, the French state’s involvement would likely be a factor due to its 15 percent stake and its role in overseeing strategic decisions for Renault. Government involvement would be anticipated to ensure that national interests and industrial strategy considerations are aligned with any proposed changes.
Year of change
Early indications point to a year of significant realignment for the alliance, potentially including a split of some automobile businesses. Renault appears intent on strengthening its electric vehicle division in the coming year, consolidating resources and focusing employment within its national borders. Meanwhile, the internal combustion and hybrid divisions, potentially attracting investment partners such as Geely or Aramco, could relocate certain activities to other countries. If these moves proceed, tens of thousands of jobs could be redirected to support new manufacturing centers and engine development programs outside France.
Industry observers note that this strategic transition would not only redefine the product lineup but also reshape the geographic footprint of manufacturing and governance within the alliance. The process would require careful coordination among the three companies to maintain supply chain resilience, maintain regulatory compliance across markets, and preserve the value proposition for customers who rely on the alliance’s global scale.
In November, an update is anticipated that will outline the current state of the alliance’s strategy, including the planned renovation of corporate priorities and updated targets for the near term. This presentation aims to provide clarity on the key operational moves and the implications for workers, suppliers, and regional operations as the alliance navigates through a period of transformation and growth potential.
Citation notes: discussions and projections summarized from industry analyses and official statements; exact terms remain subject to approval and further negotiation by the member companies and, where applicable, national authorities.