France Denies 'Destabilization' of Renault-Nissan Alliance
November 03 2015 - 7:40AM
Dow Jones News
PARIS—The French government denied Tuesday that there was any
"destabilization" of the alliance between car makers Renault SA and
Nissan Motor Co., following Nissan's comments Monday that the
state's enlarged stake in the former was a cause for concern.
"We hold to the alliance," said French economy minister Emmanuel
Macron in Paris, adding that the partnership was "essential" to the
success of Renault.
The delicate balance that has bound the two companies' capital
and technological alliance for the past 15 years has been thrown
into question ever since the French government earlier this year
increased its stake in Renault to 20% from 15%, becoming the
largest shareholder in the company. The purchase allowed the
government to apply a newly passed French law that doubles the
voting rights of the state and other "long-term" investors.
Nissan on Monday said it remains uncomfortable with France's
larger influence. Renault holds a 43.4% stake in the Japanese auto
maker, while Nissan owns a 15% nonvoting stake in the French car
maker. Hiroto Saikawa, Nissan's chief competitive officer, said
Monday that the French government's expanded stake "is a big
problem in terms of Renault's governance and we are very
concerned."
Mr. Macron tried to allay those fears on Tuesday, saying that
the government will eventually wind down the extra shares and
return to its former level of 15% ownership, though he didn't say
when that sale will happen.
"Renault took risks and invested its money to support this
group. Nissan is doing better today and we must all celebrate our
collective force," Mr. Macron said, adding that the alliance
remains "essential."
Write to Jason Chow at jason.chow@wsj.com
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(END) Dow Jones Newswires
November 03, 2015 07:25 ET (12:25 GMT)
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