Nissan Seeks Limits on France’s Role in Renault Alliance

Nissan Motor Co. has requested several measures to limit the ability of the French government to influence business decisions by the company’s alliance with Renault SA, sources tell Reuters.

The proposal aims to end an impasse between the government and the two carmakers about restructuring the 16-year-old alliance between the two companies.

Nissan’s plan demands written guarantees by the French government that it won’t use its 19.7% stake in Renault to interfere with the alliance’s business operations. If the government breaches its pledge, Nissan would be free to hike its 15% stake in Renault or cancel the alliance agreement.

Reuters says the standoff between the government and Carlos Ghosn, CEO of both carmakers, will reach a critical stage on Dec. 11 when Renault’s board is expected to respond to the government’s resistance to any change in the alliance's structure.

The state has offered to limit its voting rights in Renault. A source tells Reuters that talks about a compromise are continuing.