The story
The Alliance began on 27 March 1999. At the time, the auto industry was in a period of rapid consolidation. Numerous companies merged or were acquired in high-profile deals, most notably Daimler's merger with Chrysler in 1998 (which dissolved in 2007, when the companies separated).
At the time it was created, Renault bought 36.8% of Nissan's outstanding stock for $3.5 billion pending court approval and Nissan vowed to buy into Renault when it was financially able. In 2001, after the company's turnaround from near-bankruptcy, Nissan took a 15% stake in Renault, which in turn increased its stake in Nissan to 43.4%.
In 2002, the Alliance created the Renault–Nissan BV (RNBV), a strategic management company to oversee areas such as corporate governance between the two companies. Based in Amsterdam, it is owned 50/50 by Renault and Nissan and provides a neutral location for the Alliance to exchange ideas, build strategy and help leverage the maximum synergies between the two companies.
In 2006, the Alliance began exploratory talks with General Motors regarding the possibility of creating an industrial alliance. The talks were instigated by GM minority shareholder Kirk Kerkorian. GM reportedly demanded payment of several billion dollars to engage in an alliance, prompting Ghosn to call the terms "contrary to the spirit of an alliance." Discussions ended without agreement in October 2006, when Ghosn said, "It's clear the two sides have completely different appetites for an alliance."
Since 2010, the Alliance has undertaken a number of projects as part of a strategic cooperation deal with the German Daimler AG company.
In 2014, Renault and Nissan combined various research and development, manufacturing and business operations to increase money savings, integrate the two companies and accelerate development.
In May 2016, in the wake of the fuel-efficiency scandal uncovered by Nissan, Nissan began the acquisition of a 34% stake in Mitsubishi Motors, with the aim of making Nissan the largest and controlling shareholder of Mitsubishi and turning Mitsubishi Motors into a member of the Renault–Nissan Alliance (the "Alliance"). Nissan has said that they plan to share some car platforms and jointly develop future vehicles with Mitsubishi Motors. Nissan's acquisition of the 34% controlling interest in Mitsubishi was completed in October 2016, when Carlos Ghosn, the chairman of Nissan, Renault, and the Alliance, also became chairman of Mitsubishi. Ghosn remained chairman of Mitsubishi until his dismissal following his arrest by the Japanese government in November 2018, when Mitsubishi CEO Osamu Masuko assumed the chairmanship.
In September 2017, the Alliance announced its six-year plan "Alliance 2022" that set a new target to double annual synergies to €10 billion by the end of the plan. Carlos Ghosn said: “Today marks a new milestone for our member companies. By the end of our strategic plan Alliance 2022, we aim to double our annual synergies to €10 billion. To achieve this target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies. From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at $240 billion by the end of the plan.” Beside the announcement of the new plan, the new logo and the new name of the Alliance had been launched.
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In September 2021, Mitsubishi Motors plans to end the development of car platforms for the Japanese market and instead use vehicle bases made by ally Nissan Motor beginning around 2026 as the auto industry requires huge investments in technology.
Conflict over control
Although Nissan is larger and slightly more profitable than Renault, the latter has a theoretical control over the Alliance due to its significant voting stake in Nissan and its Nissan board seats (contrasted with Nissan's non-voting stake in Renault). In addition, the single largest shareholder in Renault is the French government, which may have the effect of placing Nissan policy under French government control and has contributed to resentment over the terms of the Alliance within both Nissan and Japan. To strengthen French shareholder control over French companies, France passed the "Florange law" in 2014 that automatically doubled the voting power of long-term shareholders unless the company opted out, which gave France's 15% stake in Renault significantly more voting power and control rights. In April 2015, Renault brought a measure to opt out of the "Florange law" to a shareholder vote. However, the French government, led by the then Minister of the Economy and Finance and later the President Emmanuel Macron, made a short-term purchase of an additional €1.23 billion of shares in Renault to enable it to defeat the opt-out, which was widely seen as a corporate raid by the French government.
In response, Nissan second-in-command Hiroto Saikawa threatened to have Nissan exit the Alliance unless Renault did the following: sell down its controlling Nissan stake, restore voting rights to Nissan's holding in Renault, and relinquish control of the Alliance. Macron and France ignored the demands, figuring that they could reach a deal with Ghosn that was tied to an extension of his leadership of Renault. To alleviate the tension, Renault entered into a binding pledge never to oppose the Nissan board at a company shareholder meeting.
In early 2018, Ghosn discussed making the Alliance "irreversible" and began talks to merge Renault and Nissan, which would have kept them both under his (and French) control, with Mitsubishi to join the merged company later. However, Ghosn's November 2018 arrest in Japan and dismissal from both Nissan and Mitsubishi, which left Saikawa in charge of Nissan, immediately ramped up the tensions between the Japanese companies and the French government, which was given no advance notice of the pending arrest.
After Ghosn's departure from Nissan, Nissan stated that it was denied the opportunity to present evidence of Ghosn's malfeasance to Renault's board. Subsequently, Macron and the French government have reportedly informed the Japanese that they want the merger between Renault and Nissan to go forward and that they want to name Nissan's next chairman. In response, Nissan CEO Saikawa said that this was not the right time to discuss future capital ties between Nissan and Renault.
Despite the conflict, each of the companies has reaffirmed its commitment to the Alliance; for example, Mitsubishi CEO Osamu Masuko said that the Alliance was essential "if we consider the many challenges the auto industry faces. I’ve never thought for once that it was a mistake to join" the Alliance. Nissan and Renault have also repeatedly said that dissolving the Alliance is not an option for either company.
On 12 March 2019, the three Alliance companies signed a memorandum of understanding for creating a "Alliance operating board" with Jean-Dominique Senard as chairman and the CEOs from the three companies as equal members.
From Wikipedia’s article on Renault–Nissan–Mitsubishi Alliance, shared under CC BY-SA 4.0.4