Nissan shareholders oppose naming Renault as the parent company

The alliance that welcomed Japan's Mitsubishi Motors Corp in 2016, was shaken by Carlos Ghosn's termination in 2018 due to a financial scandal. Since then, the manufacturers have promised to collaborate more closely and pool more resources to create electric vehicles (EVs).

At its annual general meeting (AGM), Japan's Nissan Motor Co., Ltd. rejected a shareholder resolution that would have revealed a long-standing arrangement with 43 per cent shareholder Renault SA.

One investor put out the idea before the AGM of Renault being named as Nissan's parent company, which would legally require the disclosure of the document outlining the capital and business cooperation between the two manufacturers.

Lack of disclosure prohibits shareholders from criticising the alliance, which remains "unequal," the investor claimed. Nissan holds only a 15% non-voting interest in Renault.

Observers anticipated that the French automaker's rejection would kill the idea. However, Nissan stated last month that, to the extent, it did not contravene a confidentiality commitment, it would include information about the deal in its annual securities report.

The breadth of the 23-year-old alliance, founded when Renault saved Nissan from bankruptcy, will be cleared by the full publication of the Restated Alliance Master Agreement. The agreement has long been a source of contention since it enables Renault to take a more active role in managing Nissan.

The alliance, which welcomed Japan's Mitsubishi Motors Corp in 2016, was shaken by Carlos Ghosn's termination in 2018 due to a financial scandal. Since then, the manufacturers have promised to collaborate more closely and pool more resources to create electric vehicles (EVs).

However, Renault stated in April that all options were on the table when it came to revamping its company in response to the rapidly electrifying care sector, including a potential public offering of its EV subsidiary. According to Nissan's chief operating officer, it is still too early to think of spinning off its EV sector. Nissan was an EV pioneer with its 2010 Leaf.