Nissan Motor Company is planning to lower its ownership in its long-time partner Renault, according to Nissan’s CEO Ivan Espinosa. This move is part of the company’s strategy to free up funds for developing new vehicles, especially as the auto industry faces tough competition and changing market demands. The news was first reported by a major business newspaper, and it follows earlier discussions between the two carmakers about adjusting their mutual investments.

Earlier this year, in March, Nissan and Renault had agreed to change the rules of their partnership. Previously, both companies were required to hold at least 15% of each other’s shares, but they decided to reduce this minimum to 10%. This means Nissan can now sell some of its Renault shares if it chooses to, but it must follow certain conditions, such as giving Renault the first chance to buy those shares before offering them to others.

If Nissan sells a 5% stake in Renault, it could earn around 100 billion yen (about $640 million) based on current stock prices. This money would likely be used to invest in new car models and advanced technologies, helping Nissan stay competitive in the fast-changing auto industry. Right now, Nissan owns 15% of Renault, according to financial data.

This decision comes at a time when Renault is also going through some big changes. Just a day before this news came out, Renault announced that its CEO, Luca de Meo, would be leaving the company to take on a role outside the automotive sector. Despite these shifts, Nissan has made it clear that its partnership with Renault remains strong and that both companies will continue working together.

"We are reducing our cross-shareholdings so we can invest more in future vehicles," Espinosa said in an interview. He explained that while the two companies remain partners, Nissan wants to use its resources to focus on innovation and growth. Nissan also released a statement saying that if it decides to sell any shares in the future, the money would mainly go toward developing new products. However, no final decisions have been made yet.

This potential share sale is another step in the gradual loosening of ties between Nissan and Renault, who have been partners for over twenty years. Their alliance began in the late 1990s when Renault helped rescue Nissan from financial trouble. Over the years, Renault held a larger share in Nissan, which sometimes caused tension between the two. Last year, they rebalanced their partnership to give Nissan more independence, and Renault started reducing its stake in Nissan by placing some shares in a trust.

The auto industry is going through major transformations, with electric vehicles, self-driving technology, and stricter environmental regulations changing how car companies operate. By selling part of its stake in Renault, Nissan hopes to have more financial flexibility to keep up with these changes. Both companies will continue collaborating on certain projects, but they are also making sure they have the freedom to make their own decisions.

Nissan’s move reflects a growing trend in the business world where companies are reevaluating their partnerships to adapt to new challenges. While alliances can provide stability, sometimes reducing financial ties allows companies to invest more in their own future. For Nissan, this could mean faster development of electric cars, better technology, and stronger competition against rivals like Toyota, Honda, and Tesla.

Renault, on the other hand, will continue focusing on its own strategies, including its shift toward electric vehicles and new mobility solutions. Even with a smaller stake held by Nissan, the two companies are expected to keep working together in areas like shared technology and manufacturing. The alliance has been beneficial for both in the past, and while their financial connections may weaken, their cooperation in key areas is likely to continue.

The relationship between Nissan and Renault has seen ups and downs over the years, but both companies understand the value of staying connected while also maintaining their independence. As the auto industry evolves, this balanced approach could help them navigate future challenges while still benefiting from their long-standing partnership.

For now, Nissan has not confirmed when or how much of its Renault stake it will sell, but the possibility shows that the company is looking for ways to strengthen its position in a competitive market. Investors and industry experts will be watching closely to see how this decision impacts both carmakers in the coming months.

In summary, Nissan’s plan to reduce its ownership in Renault is a strategic move to secure more funding for its own growth. While the two companies will remain partners, this step allows Nissan to focus more on its future projects. The auto industry is changing rapidly, and companies must adapt to stay ahead. By adjusting their financial ties, both Nissan and Renault are positioning themselves for success in the years to come.

The story of Nissan and Renault’s alliance is a reminder that even strong partnerships sometimes need to change with the times. As both companies move forward, their ability to balance cooperation and independence will be key to their long-term success. Whether through new electric vehicles, advanced technology, or smarter business strategies, Nissan and Renault are preparing for a future where innovation and flexibility matter more than ever.