by Gilles Guillaume

Paris (Reuters) -Teux years after having softened their alliance founded two decades before, Renault and Nissan announced on Monday a new softening to help in particular the recovery of the Japanese car manufacturer, each partner can now lower their cross -participation to 10%, against 15% so far.

The diamond group has also announced its intention to rise 100% in the Indian factory, so far co-deducted to 49% by Renault and 51% by Nissan in order to strengthen its own international development, while Nissan “would be released from its commitment to invest in Ampere”, the Renault electrical and software entity, to which it had promised an investment of 600 million euros.

“Renault and Nissan looked at how they could help each other, and how they could increase the flexibility of each partner,” said Renault Group, Duncan Minto, during a teleconference.

“Today’s decision gives Nissan additional flexibility, with the possibility for him to sell assets and increase his cash position, which is beneficial in our eyes at a time when a restructuring plan is initiated.”

Renault confirmed its forecast of a free cash flow greater than or equal to two billion euros in 2025 despite an impact of around 200 million linked to the resumption of Nissan shares in the Indian factory, as well as its objective of an operational margin greater than or equal to 7% this year.

A Nissan on a Twingo confirmed base

Prayed to say what remained of the Franco-Japanese alliance while common projects in India and electric were at the heart of rebalancing announced two years earlier, Duncan Minto replied that the partnership was still very alive because the common products in India were maintained, and that the project of a version for Nissan of the future Renault Twingo Electric had been confirmed.

This program planned for 2026 will complement other shares in Europe, notably on the micra derived from the new electric R5.

“Nissan undertakes to preserve the value and profits of the strategic partnership within the Alliance while implementing recovery measures to improve its efficiency,” said Ivan Espinosa, new managing director of the Japanese car manufacturer, quoted in a press release.

The Japanese group appointed its planning director in early March to succeed Makoto Uchida, who was challenged after the deterioration of the results of the third Japanese car manufacturer and the failure of negotiations around a merger with Honda.

Nissan, of which Renault is the main shareholder with today 17.05% of the capital held directly, has been sealed for several years by declining sales and turmoil within his management, having never really managed to take up the tremors caused by the fall of Carlos Ghosn, architect of the Renault-Nissan alliance, accused by the Tokyo prosecution of financial embezzlement.

The amendment of the new 2023 alliance agreement and the termination of the Nissan investment agreement in Amprere will become effective subject to the realization of certain prerequisites, expected by the end of May 2025, added Renault and Nissan in their press release.

(Written by Gilles Guillaume, with Daniel Leussink in Tokyo, edited by Blandine Hénault and Sophie Louet)

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