Japan, France Affirm Support for Renault-Nissan Alliance

Senior representatives of the Japanese and French governments have declared their mutual support for the 20-year-old Renault-Nissan alliance.

Hiroshige Seko, Japan’s minister of economy and trade, and Bruno Le Maire, France’s finance minister, affirmed in a phone call yesterday that they will cooperate to strengthen the troubled partnership, according to both governments. But the ministers did not indicate any specific actions to do so.

Resentment has been festering at Nissan Motor for years over the cross-ownership structure of the alliance. Nissan, which now contributes most of the partnership’s sales volume and revenue, wants greater clout in governing the business.

Nissan’s contribution to the alliance grew even greater two years ago, when Mitsubishi Motors Corp. joined the alliance. Nissan acquired a controlling 34% stake in MMC in 2016.

Nissan’s resentment has become harsher since Carlos Ghosn, former chairman of both carmakers and the alliance itself, was arrested in November on charges of financial wrongdoing. Ghosn had been trying to broker a restructuring scheme that would mollify Nissan without offending the French state.

Renault holds a 43% voting stake in Nissan, and Nissan owns a 15% nonvoting stake in Renault. The French government owns 14% of Renault and has played an active role in the company’s decisions, especially those that impact jobs in France.

Until last week, France has opposed any change in the ownership structure of the alliance. But Martin Vial, head of the government’s shareholding authority, signaled a willingness to reconsider—if the result is a stronger and more competitive alliance.