Nissan is seeking to limit state voting rights in Renault, as well as written guarantees against intervention in its operations by the French carmaker, which owns 43.4 percent of Nissan. The Japanese automaker seeks to raise its own stake in Renault to 25 percent or more, in order to deter management interference by the French government. Since Renault rescued Nissan from near-bankruptcy in 1999, the Japanese automaker has outgrown its parent, accounting for two-thirds of combined sales. The alliance has been under negotiations since April, when Paris raised its stake in Renault from 15 to 19.7 percent, securing double voting rights. Nissan and French officials have been negotiating for months, but on December 11th, Renault’s board decides on a response to the French government power grab. France recently offered to limit the exercise of its voting rights in Renault. Instead, Nissan seeks to neutralize Renault’s control through written undertakings. Currently, Renault has the right to name Nissan’s top three executives, among other things. “What the French intervention has revealed is that the current alliance structure is inadequate,” said a source close to Nissan. “We need governance put in place to prevent this happening again.”
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