Technology sharing is in trouble as Renault, Nissan hammer out reset, sources say

PARIS/TOKYO (Reuters) – As Renault (RENA.PA) and Nissan Motor (7201.T) negotiate to reshape their decades-old partnership, sharing technology is at stake. ing. , two people familiar with the debate told Reuters.

The French and Japanese automakers said this month they were discussing the future of the partnership, including a possible investment by Nissan in an electric car business spun out of Renault.

Those talks included consideration of Renault selling part of its about 43% stake in Nissan, Reuters previously reported.・Carlos Ghosn became a fugitive.

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Intellectual property sharing has been a focus of these talks, two people said, but declined to specify because the information is private.

For the French automaker, a “relaunch” means the relationship needs to be more than financial, one of the people said.

“What matters is what Nissan brings to intellectual property, engineering and common projects,” the person said.

French dominance in the alliance has long been a point of contention, as Nissan owns only 15% of Renault and has no voting rights. Many executives at Japanese automakers believe the relationship is imbalanced, especially with regard to development.

Nissan’s concerns are centered on future technology sharing, including all-solid-state batteries for electric vehicles currently under development, a second person said. Sharing old technology is less of a concern, the person said.

Renault is US rival Tesla (TSLA. O).

Nissan and Renault declined to comment.

politics in the spotlight

The French government, which owns about 15% of Renault, is keen for the automaker to retain its industrial and technological edge, Finance Minister Bruno Le Maire said.

Following his comments, Japan’s trade ministry asked Nissan about its stance, one of the people said.

The Ministry of Economy, Trade and Industry did not respond to a request for comment outside of normal business hours.

Renault wants Nissan to invest in its electric vehicle division, but Nissan wants to cut its stake in Renault to 15%, Reuters previously reported.

The two companies have yet to reach an investment agreement, according to three people familiar with the matter.

Bloomberg News cited sources saying Nissan will invest between $500 million and $750 million in exchange for about 15% of the unit.

Given the need for investment, Renault is keen to reach a deal between the two companies, according to people familiar with the negotiations.

“There is no reason why Nissan absolutely must participate,” said the person, who said the cost-effectiveness of the investment must be explained to shareholders.

The automaker is aiming for a November 15 announcement, but details are yet to be finalized and could take several weeks, one of the people said.

The alliance’s junior partner, Mitsubishi Motors (7211.T), is likely to invest a few per cent in Renault’s new division to maintain the alliance’s relationship, another person familiar with the matter said.

Mitsubishi said it had not yet entered into detailed discussions on the investment.

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Reports by Gilles Guillaume in Paris and Maki Shiraki and David Dolan in Tokyo.Edited by Christopher Cushing

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