The talks seeking a compromise come after sources said Nissan had drawn up proposals to neutralize partner Renault’s control and block French government interference in the alliance.
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The French government, led by the economy minister and former Rothschild banker Emmanuel Macron, increased its stake in Renault to 19.7 per cent and introduced laws that double the power of long-term investors in the company.
Nissan held a board meeting on Monday to discuss a range of issues including the situation surrounding Renault’s voting rights, the group said in a statement earlier.
Nissan’s labour union has also stepped into the row to criticise the French government, a rare move.
Nissan now owns a non-voting 15 percent of Renault.
France offered last month to limit the exercise of its voting rights in Renault, sources told Reuters.
If the French government is really prepared to take this fight to the wire, it may be able to lift its voting stake in Renault to perhaps 20 or 25 percent.
Renault’s board is due to meet next week.
Executives at Nissan expect the industrial alliance with Renault to remain intact regardless of any change to the shareholder structure, because the two carmakers have cut costs by sharing vehicle platforms and suppliers.
NissanNSANY 1.74 % Motor Co.is considering raising its stake in alliance partner Renault SARNO 1.52 % to at least 25% from the current 15%, among other options, a person with knowledge of the matter said Tuesday.
Concerns have mounted that the French government’s increased control of Renault could see it attempt to switch jobs and investment in Nissan from the United Kingdom to France. At the same time, it risks losing the trust of Ghosn and of Renault’s institutional shareholders, and alienating Nissan, the cash cow that’s keeping the whole show going.
The main tactic being examined to counter the growing French influence would be a move to reduce Renault’s holding in Nissan below 40 percent, from the current 43.4 percent, according to Bloomberg’s Mathieu Rosemain and Helene Fouquet.
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“We hope this matter can be resolved as soon as possible so that we can reestablish the foundations of a successful alliance while preserving the independence of Nissan”, the union said.
