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     aeresearch.net

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

Universal Music Group leaps to USD 55 billion in stock market debut

Universal Music Group leaps to USD 55 billion in stock market debut

By Nikita Chaurasia

Universal Music Group's stock market debut marked Europe the largest listing this year, with shares surging over a third as investors wager on the potential of music streaming in the long run. The world's largest music label, which represent...

Microsoft offering internships to boost technology skills in Indians

Microsoft offering internships to boost technology skills in Indians

By Nikita Chaurasia

Microsoft Corporation has reportedly launched the new Future Ready Talent internship program to teach technology skills to the Indian youth to make them job-ready. The program is free of cost and can be available for students who have graduated in 2...

PepsiCo to cut plastic use, launch plant-based snacks in green push

PepsiCo to cut plastic use, launch plant-based snacks in green push

By Nikita Chaurasia

As the necessity for actions that tackle climate change intensifies, PepsiCo has announced that it will reduce the use of virgin plastic and expand its business of SodaStream carbonated water to more markets, however, some environmental groups want t...

Google fined USD 177 Mn by South Korea over anti-competitive practices

Google fined USD 177 Mn by South Korea over anti-competitive practices

By Nikita Chaurasia

The fine is considered to be the ninth-biggest by the regulator to date. It was announced when South Korea’s Telecommunications Business Act, popularly known as “anti-Google law” came into effect.  South Korea’s Kore...

England to become the first country to require EV chargers in new homes

England to become the first country to require EV chargers in new homes

By Nikita Chaurasia

Even the commercial establishments will be required to include EV chargers. The news echoes on U.K.’s efforts to achieve net-zero greenhouse gas emissions by 2050. The British government is expected to introduce a new law in 2021 which wi...