Nissan, Renault, and Mitsubishi have been part of an automotive alliance for years now, but the partnership may be changing as Nissan seeks to cut costs. The Japanese automaker is reportedly considering reducing its stake in Renault, cutting as much as five percent from its holdings.
As Automotive News reported, selling five percent of its 15 percent current stake could raise around $640 million for the automaker. Those funds would power new vehicle development and help Nissan smooth its bumpy financial position. The company has said it would shorten its product development lead times, which will take a significant amount of money.
In a statement, Nissan said that its position with Renault had not changed, but echoed the expectations around its use of the sale funds: “Should a share sale be executed in the future, the proceeds are expected to be primarily allocated toward investments in product development. However, no definitive decisions have been made at this stage.”
Nissan has seen tumbling sales since 2017, falling 42 percent since then, and the recent tariffs have made life even harder. This move comes after layoffs and other cost-cutting actions, but most believe that Nissan’s path out of this situation lies in new product launches. Unfortunately, new cars take time and money, neither of which is particularly plentiful for the automaker at this time.
[Images: Nissan]
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