Nissan plans to reduce stake in Renault for new vehicle development, potentially generating $640m

From Yahoo Finance: 2025-06-16 06:22:00

Nissan plans to reduce its stake in Renault to focus on new vehicle development. The alliance between the two automakers will remain strong despite the change in capital and boardroom connections. This move follows an amendment allowing for a lower cross-shareholding ratio and could generate $640m for Nissan.

Nissan currently holds a 15% stake in Renault, while Renault has been reducing its stake in Nissan since 2023 to balance equity. Proceeds from the potential stake sale would likely go towards product development investments. The company’s new business strategy involves cutting jobs and consolidating assembly plants globally.

In response to a $4.6 billion net loss, Nissan is looking to secure $7 billion through corporate bonds and asset sales. Meanwhile, Renault’s CEO is stepping down after five years at the helm. The board is in the process of appointing a new CEO as the company navigates changes in leadership.

Read more: Nissan reportedly to trim stake in Renault and boost new product funding