One issue centered around perceived encroachment from the French government, which attempted to invoke a new law that would have allowed it to buy a 28 percent stake in Renault. The move reportedly would have given the government 30 percent voting rights.
The concerns extended to Nissan, as Renault owns a 43.3-percent stake in the Japanese automaker. France’s increased control over Renault would have consequently allowed the country’s officials to pull strings at Nissan. Unsurprisingly, the automaker has resisted such a scenario.
The automakers’ respective boards of directors have since hashed out an apparent compromise. The agreement would cap the French government’s voting rights at 17.9 percent, or up to 20 percent in certain scenarios, and bar enfranchisement of Nissan shares in Renault.
Reflecting Nissan’s broader desire to maintain independence, the companies have also drafted a contract that prohibits Renault from interfering with Nissan’s governance.
“While there were important short-term issues to address, it was imperative that all involved took a long view,” said Renault-Nissan Alliance chief executive Carlos Ghosn.
The companies earlier this year boasted that their partnership brought $4.2 billion USD in savings for the 2014 fiscal year, thanks to common technology and shared manufacturing. The alliance expects to exceed its goal of $4.8 billion USD in annualized savings by 2016.
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