Nissan Motor reportedly plans to trim its stake in French partner Renault in order to invest more in new vehicle development.

In an interview with Nikkei, Nissan CEO Ivan Espinosa emphasised that the Japanese automaker's collaboration with Renault would continue to be robust, despite a reduction in capital and boardroom connections.

The two automotive giants, which have maintained a partnership for over two decades, had amended the alliance agreement recently as per which they can lower their required cross-shareholding ratio from a 15% to 10% with the aim of boosting “flexibility of each party”.

The sale of a 5% stake in Renault could generate approximately Y100bn ($640m) at current market prices for Nissan, reported Reuters.

According to LSEG data, Nissan presently holds 15% stake in Renault.

Meanwhile, Renault's stake in Nissan, held in a French trust, has been gradually reduced since 2023, following an overhaul of their alliance to ensure a balanced equity between the two firms.

"Should a share sale be executed in the future, the proceeds are expected to be primarily allocated toward investments in product development. However, no definitive decisions have been made at this stage," the company reportedly stated.

After assuming office in April, Espinosa developed a new business strategy named "Re:Nissan."

The plan aimed to cut 20,000 jobs and reduce the number of automobile assembly plants worldwide from 17 to 10 by March 2028.

This decision came in response to a net loss of Y670.8bn ($4.6 billion) for the fiscal year ending in March 2025.

It was also recently reported that Nissan Motor Company plans to secure up to JPY1tn (US$ 7bn) through new corporate bonds and asset sales as it faces bond redemptions and restructuring expenses.

Meanwhile, Renault’s CEO Luca de Meo has announced his decision to step down from his position after heading the group for five years.

His departure would be effective from 15 July and until then will continue to perform his duties.

The board of directors at Renault has initiated the process of appointing a new CEO.

"Nissan reportedly to trim stake in Renault and boost new product funding" was originally created and published by Just Auto, a GlobalData owned brand.

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