Nissan’s Turnaround Plan Back on Track Despite Industry Headwinds
Nissan is part of the Renault-Nissan-Mitsubishi Alliance. The firm is 35.7% owned by Renault, while Nissan owns 15% of Renault. Under the new alliance agreement reached in July 2023, Nissan's 15% ownership in Renault will gain voting rights and both Renault's and Nissan's ownership voting rights will be capped at 15% each. Renault holds the rest of the stake in Nissan through a French trust, which will vote the shares neutrally for “most decisions” but retain the economic benefit of the dividends and any proceeds if shares are sold. Also, Nissan holds a controlling 24% stake in Mitsubishi Motors. Nissan's cross-ownership with Renault had been viewed as a rare success, with few international automotive companies replicating the alliance. However, discontent among leadership between Nissan and Renault became evident with the dismissal of Carlos Ghosn on allegations of misconduct in November 2018. Despite the opportunity for economies of scale in the alliance, Nissan's recent performance had been dismal but is now improving.
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