Big move from Nissan to save the Alliance
To secure the future and solve the problems that occurred in the Renault/Nissan/Mitsubishi Alliance after the Ghosn debacle, Nissan will confine its activities in Europe in the coming years.
Japan’s number two car manufacturer will concentrate in the future on the Japanese home market, the United States, and China. Activities in Europe will be restricted to avoid too much competition with Alliance partners Renault and Mitsubishi.
Save the Alliance
Most important in this strategy is the clear willingness of Nissan to save the 21-year-old Alliance with French partner Renault. In the wake of the Ghosn crisis, tensions rose between the two partners.
More importantly, Nissan isn’t doing well in the market for a while now, and the corona crisis is also putting Renault under significant financial pressure. The French manufacturer decided recently already to withdraw from the Chinese market, except for the sales of electric vehicles and vans.
During several occasions in the recent past, Nissan has sent the signal that it was becoming fed up with the domination of Renault within the Alliance. When Nissan was saved by the French at the end of the previous century, Renault became a major shareholder (43% ) in Nissan, while Nissan had only a 15% stake in Renault.
Even though Nissan has grown to be the largest partner in the Alliance (also by partly taking over Mitsubishi some years ago, and integrating it in the Alliance), this shareholder imbalance didn’t change. Frustrations grew further.
At the beginning of this year, many analysts saw signs of the end of the Alliance, but both partners took great efforts in reaffirming their belief in further cooperation. With this announcement, Nissan indicates that a page has been turned and that it wants to rebuild a serious strategic plan for the entire Alliance.