TOKYO: Nissan Motor CEO Ivan Espinosa said the automaker plans to reduce its stake in French partner Renault, the Nikkei business newspaper reported on Monday.
Nissan and Renault had said in March they had agreed to reduce their required minimum stake in each other to 10% from 15%.
Under their agreement, any share sale has to be coordinated with the other party and includes a right of first-refusal.
Selling a 5% stake in Renault would raise about 100 billion yen ($640 million) at current share prices, funds Nissan plans to use for new vehicle development amid challenging business conditions, the Nikkei said.
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Nissan currently holds 15% of the French company, according to LSEG data.
The news comes as Renault said on Sunday that boss Luca de Meo is leaving the car maker to pursue a role outside the auto industry.
“We are bringing down our cross-shareholdings in order to invest in vehicles,” the newspaper quoted Espinosa as saying in an interview. Nissan said that there had been no change in its cooperative agreement with Renault.
“Should a share sale be executed in the future, the proceeds are expected to be primarily allocated toward investments in product development. However, no definitive decisions have been made at this stage,” it said in a statement.
A sale would mark the latest example of the companies loosening ties which have spanned more than two decades.
Renault separately holds a stake in Nissan that is in a French trust, which has been gradually sold down since 2023 when the two overhauled their alliance to put Nissan on more equal footing.
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