While preparing new projects, the Franco-Japanese alliance will experience an important change in its functioning.

On February 6 in London, major changes will be announced to the alliance between Renault SA and Nissan Motor Co (which also involves Mitsubishi), which will undergo a major restructuring, as this two-decade union weakens over time. Now they want to recalibrate their respective involvement and start new projects.

As Bloomberg reports, executives have given the two brands the go-ahead to match their stake and joint ventures will see a transformation. Thus, Renault should reduce its 43% stake in Nissan to only 15%, a significant drop but which is no less equal since the Japanese firm also only holds 15% in the diamond brand.

The leaders of the two brands have agreed to continue collaborating on more projects, especially industrial ones, an essential condition for Renault to have the approval of the French government, which is a very powerful shareholder.

This restructuring of the alliance provides for at least five joint projects, two of which would be developed in India where they currently operate the manufacture of small vehicles, engines and gearboxes. The other would be more related to commercial vehicles and on the other hand they want to have a closer collaboration in Latin America.

Source: Latercera