Rebuilding a life after a failed marriage is no easy task. After 25 years together, Nissan and Renault are experiencing this first-hand. The search for a new partner is uncertain, with no guarantee that they will be more compatible than the previous one. Nevertheless, this was the choice made by the Japanese automaker. On December 23, it announced that it was ready to give in to the advances of its compatriot Honda in a bid to get out of its difficulties. For its part, Renault has preferred to stand alone at this stage. But the illusion of a new-found freedom is likely to turn into a vulnerability in a sector in full transition to electric vehicles, which are increasingly demanding in terms of investment.
The unexpected announcement of a tie-up between Nissan and Honda has removed the last of the pretense surrounding the alliance forged with Renault in 1999. The misconduct with which the group's CEO, Carlos Ghosn, was accused in 2018, Nissan's desire to regain control of its destiny and the blunders of Renault's new management had shattered relations between the two groups. The announcement of a capital rebalancing in February 2023 to take their partnership to the next level had fooled no one. The outline of a few joint micro-projects tried to save face but everyone understood that the two groups were above all keen to move on.
For a long time, Nissan had no longer been able to tolerate the control exercised by Renault which itself no longer had the means to make the alliance work. Driven by nationalist impulses, the Japanese company was desperate to reduce the French company's stake in its capital in order to regain its independence.
Huge debt
No sooner had this process begun than Nissan found itself forced into the arms of Honda. Since the Ghosn affair, the situation has only worsened. Debt levels are enormous. Industrial overcapacity is glaring. Profitability has collapsed. Financially fragile and without a clear strategy, Nissan is back to square one 25 years after its rescue by Renault.
You have 64.21% of this article left to read. The rest is for subscribers only.