Nissan, Renault denounce split rumors following Chairman Ghosn’s exit
By Nikita Chaurasia  Date: 2020-01-16

Nissan, Renault denounce split rumors following Chairman Ghosn’s exit
  • The automakers ensure that the alliance was not under the danger of being dissolved.
  • Renault shares have hit six years low after the split report.

Automotive giants Nissan and Renault have recently denied reports of a possible split that resulted in their shares to reach a multiyear low. The automakers have ensured that their alliance was not under the danger of being dissolved, following the dramatic exit of Carlos Ghosn, the former Chairman, from the Japan trial.

Nissan claims that the alliance happens to be the source of the company’s competitiveness as it denied the reports of its executives looking for possibilities to break the global partnership. The company will keep delivering a win-win result for all the other member firms with the help of the alliance to be able to achieve profitable and sustainable growth.

According to Jean-Dominique Senard, Chairman of Renault, the alliance is going strong and robust, and is everything but dead. Meanwhile, Bruno LeMaire, the French Finance Minister, said that the reports said by some executives that were wishing to break the alliance are malicious.

Apparently, shares of Renault has hit a low of six years as the investors are concerned about its 20 years old cost-sharing-alliance with Nissan, which was going towards a split without Chairman, Carlos Ghosn to hold it together.

Sources like Bloomberg and Financial Times have reported that executives from Nissan have been making emergency plans to break up with Renault which has further accelerated a sell-off in the shares of the French automaker. Nissan shares sagged to the lowest in about 8-1/2 years recently in Tokyo.

Reportedly, Ghosn’s arrest in Tokyo done in 2018 was based on allegations of financial misconduct, which has only heightened the long-standing tensions within the Franco-Japanese partnership.

Apart from this, both the companies have been struggling financially as their shares had demonstrated the worst performers among various major automakers in the previous years. The companies have been potentially drifting apart especially when the cost of electrification and autonomous driving is forcing carmakers to align and consolidate.

Source Credit- https://www.autonews.com/automakers-suppliers/renault-nissan-say-alliance-not-headed-breakup

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Morgan Stanley acquires E*TRADE in stock transaction for $13 billion
Morgan Stanley acquires E*TRADE in stock transaction for $13 billion
By Nikita Chaurasia

Morgan Stanley, a renowned US-based investment banking firm, reportedly announced the acquisition of E*TRADE Financial Corporation, a financial services company offering a platform to trade financial assets. The company would acquire E*TRADE through ...

U.S. advises EU to opt 5G technology made by Samsung, Nokia & Ericsson
U.S. advises EU to opt 5G technology made by Samsung, Nokia & Ericsson
By Nikita Chaurasia

America’s global campaign to stop its closest allies from using Huawei’s 5G network now takes a new turn as the country’s top leaders are publicly urging the European Union to use 5G network made by other tech giants. According to ...

HCL bags huge contract from New Zealand dairy cooperative Fonterra
HCL bags huge contract from New Zealand dairy cooperative Fonterra
By Nikita Chaurasia

HCL Technologies has announced a massive contract with Fonterra, a dairy co-operative based in New Zealand to modernize and manage the technology infrastructure of Fonterra. The multi-year partnership with HCL technologies is expected to consolidate ...

VICEM & FLSmidth tie up for innovations in cement industry technology
VICEM & FLSmidth tie up for innovations in cement industry technology
By Nikita Chaurasia

The changing spheres of technology and innovation have prompted various global companies to try their hand in investing into R&Ds for new technology development. In one such instance, leading cement producer across Southeast Asia, Vietnam Nationa...

Shanghai govt. to lend a helping hand to Tesla for resuming production
Shanghai govt. to lend a helping hand to Tesla for resuming production
By Nikita Chaurasia

Tesla’s Shanghai plant to recommence its production with state government support amid the pandemic spread. Government to ask banks to extend loans to SMEs. The U.S carmaker, Tesla, has reportedly announced resuming its automobile producti...