As per reports, the Prime Minister of France has stated the government’s intention to remain open towards lowering its holding but stays firm on its wish to retain the alliance.
The government of France has a 19.7% stake in Renault but Prime Minister Valls has stated how the government is open towards bringing down its overall holding. Manuel Valls has stated his opposition to the full merger of Nissan and Renault and has declared how the government wishes to preserve the alliance instead. This comes after a tension laced week relating to the role of the state in relation to the carmaker. The state will fully play its role as a shareholder according to the Prime Minister but a merger is not desired at present while the alliance is sought to be preserved. The Government has also reiterated its confidence in the managers of Renault and Nissan as well.
According to the Prime Minister, the state could definitely bring down its overall holding in the near future but the alliance between Nissan and Renault is sought to be preserved by the government. In early 2015, the government increased its stake from 15% to 19.7% in Renault. The Prime Minister had then stated how this was a positive step and a vote of confidence given the recent setbacks to the automobile industry post the Volkswagen emission scandal. Nissan has been a Renault partner since the year 1999 and has earlier openly talked of its growing concern at the increasing stake of the French government in Renault.
There were huge rumors relating to how Nissan wished to renegotiate and discuss the partnership terms with regard to giving it voting rights on the general assembly of Renault. Renault has a stake of 43.4% in the Japan based Nissan while a Nissan subsidiary controls approximately 15% of Renault.