Nissan Plans to Cut Renault Stake Amid Shift Toward Vehicle Investment

Nissan Motor Co. is preparing to reduce its stake in long-time alliance partner Renault SA from 15% to 10%, according to company CEO Ivan Espinosa, as reported by The Nikkei on June 16. The decision reflects a broader restructuring of the two-decade partnership between the Japanese and French automakers, aimed at achieving greater operational independence and rebalancing equity ties.

The move aligns with a prior agreement announced in March 2024, where both automakers consented to reduce their minimum cross-shareholding from 15% to 10%. The agreement stipulates that any sale of shares must be coordinated between the parties and includes a right of first refusal. If Nissan proceeds with the sale of a 5% stake in Renault, the transaction could yield approximately 100 billion yen (around USD 640 million), based on current market valuations (Reuters, 2025).

Espinosa told The Nikkei that the company is realigning its capital structure to prioritize investment in new vehicle development, especially as the automotive sector faces increasing pressures from electrification, software integration, and supply chain disruptions. "We are bringing down our cross-shareholdings in order to invest in vehicles," Espinosa stated in the interview.

According to LSEG data, Nissan currently holds 15% of Renault, while Renault retains a larger but gradually shrinking stake in Nissan through a French trust. Since 2023, Renault has been unwinding its holdings as part of a strategic overhaul of the alliance, intended to give Nissan greater autonomy in strategic decision-making and operational execution.

The news also comes on the heels of a leadership shake-up at Renault. CEO Luca de Meo announced on Sunday that he is departing the company to pursue a role outside the automotive industry, introducing further uncertainty at a time when both automakers are redefining their roles within the partnership.

From a market perspective, this restructuring reflects a continued shift in legacy automaker alliances as they adapt to competitive pressures from electric vehicle (EV) startups, rising R&D costs, and fluctuating global demand. Analysts see Nissan’s potential stake reduction as both a financial recalibration and a strategic signal that it intends to focus on innovation and product pipeline rather than legacy entanglements. In the short term, the share sale could provide a liquidity boost and flexibility for capital allocation, particularly as Nissan ramps up investments in EV platforms and digital technologies.