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

Netflix confirms producing fictionalized version of Spotify’s ascension

Netflix confirms producing fictionalized version of Spotify’s ascension

By Nikita Chaurasia

Over-the-top content streaming & production giant Netflix Inc. is reportedly working on an untitled series that tells the story of one of the most successful music streaming companies, Spotify Ltd. The six-part series, already listed on Netflix,...

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

By Nikita Chaurasia

Byju’s, the largest education technology company, has emerged as India’s highest-valued startup after a USD 340 million funding round involving investors such as UBS Group, Blackstone, and Zoom founder Eric Yuan among others. Recently, B...

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

By Nikita Chaurasia

Hesai Photonics Technology Co. Ltd., a leading Shanghai-based LiDAR company, has reportedly secured USD 300 million in a Series D funding round which was led by GL Ventures LLC, Xiaomi Corporation, Hillhouse Capital Group, Meituan, and CPE. The roun...

Tesla terminates production of its Model S Plaid + variant indefinitely

Tesla terminates production of its Model S Plaid + variant indefinitely

By Nikita Chaurasia

CEO Elon Musk justified Model S Plaid as good enough against its successor. The Model S Plaid + was touted to be Tesla’s flagship vehicle, with a range of around 519 miles. After unveiling for the first time last year, American EV maker T...

ByHeart concludes largest U.S. clinical trial for infant food product

ByHeart concludes largest U.S. clinical trial for infant food product

By Nikita Chaurasia

ByHeart Inc., a New-York based infant, and baby nutrition company, has recently announced the completion of the largest clinical trial for new infant formula in the past 25 years. With this move, the company is earmarked to be the 4th FDA registered,...