Japanese automaker Nissan Motor and French counterpart Renault have finalized the framework for an agreement to change the structure of their partnership. Renault currently holds 43% of Nissan's shares, but with the new agreement each company will hold 15% of the other's shares. This will make the partnership more equal. We will pay close attention to the French-Japanese business alliance as it sets off on a new journey, navigating the rapidly changing auto market.
The alliance began in 1999. Nissan, mired in a financial crisis, asked Renault for a bailout, making it inevitable that Renault would take the lead in the partnership. However, after nearly a quarter century, Nissan has recovered -- in part because of the reforms implemented by former Chairman and CEO Carlos Ghosn. There has been growing dissatisfaction within Nissan about the Renault-dominated structure.