Nissan looking to reduce its share in Renault, says CEO

It’s been well documented in reports that Nissan is in the middle of a challenging business condition, which is why its restructuring plans are out in full swing to turn things around.

This time, the troubled carmaker looks to be making efforts to generate more funds and continue its business operations. According to Nikkei Asia, Nissan CEO Ivan Espinosa said they plan to offload some of their shares in its French alliance partner, Renault.

Earlier in the year, both parties have already agreed to reduce their required minimum stakes from 15% to 10%. With Nissan currently holding a 15% stake in Renault, that gives the Japanese carmaker a 5% buffer that they could offload and still satisfy the required minimum stakes in the agreement.

Based on reports, selling the 5% stake in Renault will give Nissan about JPY 100 billion (USD 640 million) based on current share prices, which Nissan plans to use for new vehicle development. Likewise, should Nissan pull the trigger on selling its Yokohama headquarters in Japan, that could give them another JPY 100 billion to cushion their losses.

Despite these troubles, Nissan’s vehicle development team seems to be driven to deliver new and exciting vehicles. The all-new Patrol Y63 shows the brand is in a positive direction, and here’s to hoping they continue to produce the right cars for the market as they claw their way out of the tunnel.