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

Razorpay: New funding en route, meteoric rise in market value expected
Razorpay: New funding en route, meteoric rise in market value expected
By Nikita Chaurasia

Indian startup Razorpay is reportedly in discussions with Singapore-based sovereign wealth fund GIC Pvt. Ltd. and other existing investors to raise around USD 200 million in a funding round that would allow the fintech company to double its valuation...

FDA to allow pharma companies modify COVID-19 shots amid variants surge
FDA to allow pharma companies modify COVID-19 shots amid variants surge
By Nikita Chaurasia

With the rising cases of Coronavirus variants, the United States Food & Drug Administration (FDA) has reportedly introduced guidelines for pharmaceutical companies to modify their COVID-19 vaccine doses in an effort to curb the spread of the dise...

Gan & Lee partners with IDF to expand its diabetes treatment portfolio
Gan & Lee partners with IDF to expand its diabetes treatment portfolio
By Nikita Chaurasia

China-based leading pharmaceutical organization Gan & Lee Pharmaceuticals Co. Ltd. has announced to have signed a strategic collaboration with the International Diabetes Federation (IDF) to bolster its efforts towards promoting the prevention and...

Google Pay under CCI investigation over antitrust claims in India
Google Pay under CCI investigation over antitrust claims in India
By Nikita Chaurasia

The Competition Commission of India (CCI) has reportedly begun an investigation to inspect if the renowned online payment system Google Pay has misused its dominance in the digital marketplace in the country. Sources close to the matter stated that ...

SpaceX’s valuation skyrockets with USD 850 million funding round
SpaceX’s valuation skyrockets with USD 850 million funding round
By Nikita Chaurasia

According to reliable sources, California-based aerospace manufacturer and space transportation services company SpaceX, headed by Tesla’s Chief Executive Elon Musk, recently completed an equity funding round of USD 850 million, post which the ...