Nissan plans to sell 5% of Renault shares to cash out 10 billion yuan and accelerate new car development to meet challenges

Ivan Espinosa, CEO of Nissan Motor, confirmed plans to reduce its stake in French partner Renault by 5%, a move that is expected to raise about 100 billion yen (about 4.974 billion yuan). The reduction is a key move after the two parties revised the "New Alliance Agreement" in April this year, which has lowered the minimum cross-holding ratio from 15% to 10%, paving the way for this capital adjustment.

It is worth noting that this action is closely aligned with the terms of the agreement between the two parties - Nissan not only uses this to relieve its investment obligations in Renault's electric vehicle division Ampere, but also obtains the right to reduce its stake through a coordination process. Espinosa emphasized that in a challenging market environment, the funds raised will be fully invested in new car research and development, aiming to build a more resilient business model to cope with industry changes. The CEO, who just took office in April this year, once bluntly stated that such strategic adjustments are key measures to "reserve ammunition for the company's future investment."

Moody's previously downgraded Nissan's credit rating to junk level, and the alliance restructuring became an important breakthrough point. In March this year, Renault exempted Nissan from its 600 million euro investment commitment in Ampere and took over the Indian joint venture between the two parties, freeing up more resources for Nissan to focus on its core business. As competition in the global automotive industry intensifies, this capital operation may reshape the balance of power in the Nissan-Renault Alliance and inject new momentum into Nissan's independent research and development strategy.