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

Tesla to procure nickel from Indonesia through a USD 5 billion deal

Tesla to procure nickel from Indonesia through a USD 5 billion deal

By Nikita Chaurasia

Tesla Inc. has reportedly made contracts worth USD 5 billion with Indonesian nickel manufacturing companies to buy materials for its batteries. For a while now, Indonesia has been trying to get Tesla to invest in setting up a sturdy manufacturing fac...

Amazon Inc. to acquire robotic vacuum maker iRobot for USD 1.7 billion

Amazon Inc. to acquire robotic vacuum maker iRobot for USD 1.7 billion

By Nikita Chaurasia

Credible sources have recently cited that Amazon Inc. is steadily gearing up to acquire iRobot Corporation for USD 61 per share in an all-cash deal that would close the deal at a valuation of USD 1.7 billion as per current estimates. This deal fol...

Robinhood shares surge 13% despite eliminating 23% of its employees

Robinhood shares surge 13% despite eliminating 23% of its employees

By Nikita Chaurasia

Robinhood Markets, Inc. the trading app that popularized one-click transactions, is reportedly laying off nearly 23% of its employees. The company’s CEO Vlad Tenev claimed that the downsizing would affect staff members throughout the company, p...

Bank of England looking into continuously rising inflation in the U.K.

Bank of England looking into continuously rising inflation in the U.K.

By Nikita Chaurasia

The Bank of England has reportedly stated that it will take aggressive measures, if necessary, to prevent the inflation issue from becoming a prolonged challenge. Sources claimed that the central bank might bring an unusual hike of a half-percenta...

Indonesia bans multiple online services for missing regulatory deadline

Indonesia bans multiple online services for missing regulatory deadline

By Nikita Chaurasia

The Indonesian government has reportedly banned access to a series of digital platforms, including PayPal Holdings Inc., Steam, Epic Games Inc., and Yahoo Inc., for failing to comply with the country's new mandate regarding content review policie...