Nissan Motor Company is not fully content about their current partnership with Renault, as French government’s control is still very strong.
Nissan is looking to establish a more balanced relationship with Renault, being concerned about the French government’s growing influence over their alliance. Chief Competitive Officer of the Japanese company, Hiroto Saikawa, raised this type of concern today. Renault is holding a 43,4 percent stake in Nissan, with the Japanese automaker owning a non-voting 15 percent holding in Renault. Nevertheless, Nissan is proving to be financially stronger, according to the first nine-month revenue reports. “The French state is having a greater say (in Renault) from the standpoint of governance. This is a big issue, and from Nissan’s stance this is a concern”, Saikawa stated after Nissan reported its second-quarter earnings. Carlos Ghosn, the CEO of both companies, is trying to rebalance the scale of power as some investors believe it is too favourable to Renault.
The Nissan executive said that those concerns were brought to the attention of the French government and both sides wanted to make the partnership stronger than it is right now. Last week, it was reported by Reuters that the Japanese automaker made a proposal to buy a larger stake in Renault. Today, Nissan reported a higher-than-expected second-quarter operating profit with a forecast for 2015 raised by 8 percent and it now expected a full year operating profit of 6,1 billion. The increase was due mostly to stronger sales in North America.
By Sorin Petcu