|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||7.75 - 7.83|
|52 Week Range||7.61 - 14.42|
|Beta (5Y Monthly)||1.61|
|PE Ratio (TTM)||1.97|
|Forward Dividend & Yield||0.80 (10.37%)|
|Ex-Dividend Date||Jun 13, 2019|
|1y Target Est||N/A|
Carlos Ghosn's departure from Renault-Nissan left the alliance in doubt. But in a bid to prove the partnership is still running smoothly, Renault's engineering boss will reportedly meet his counterpart at Nissan this week Two sources close to Renault said the carmakers want to revive joint projects that slowed down after the partnership was left reeling by the Ghosn drama. Japanese prosecutors arrested Ghosn in 2018 and accused him of financial misconduct - which he denies. The former alliance leader slipped out of Japan and fled to Lebanon at the end of December . Renault-Nissan's cost-saving alliance is seen as vital to both companies as the car industry battles a slowdown with a costly focus on cleaner vehicles and automated driving. One area focus for the alliance will likely be hybrid power systems Analysts say it's a field where the two firms have not effectively shared R&D.
It's an alliance under pressure - but French carmaker Renault and Japanese partner Nissan are standing strong insisting there is no danger of the partnership being dissolved. The group, which also includes Japan's Mitsubishi, responded to a media report of a potential breakup. The chairman of Renault, Jean-Philippe Senard, told a Belgian newspaper that the alliance was "solid and robust". While Nissan said it was "in no way considering dissolving the alliance." Renault shares hit six-year lows on Monday as investors worried the French group's 20-year cost-sharing alliance with Nissan was headed for a break-up without Carlos Ghosn to hold it together. Long-standing tensions in the Franco-Japanese partnership have been heightened since former boss Ghosn's arrest in in 2018 on allegations of financial misconduct, which he denies. He remains in Lebanon after fleeing the Japanese justice system while awaiting his trial. A Financial Times report on Monday that Nissan executives are making contingency plans for a split appeared to accelerate a sell-off in Renault shares. Nissan shares tumbled to their lowest in 8-1/2 years on Tuesday in Tokyo.
Renault has named Luca de Meo as its chief executive as the French carmaker looks to stabilise the company, following the chaos that engulfed the group after the ousting of former boss Carlos Ghosn more than a year ago. The Italian, a former Volkswagen and Fiat executive, will join the company in July, at a critical time for the business. Renault is trying to stem falling sales and repair a fractured relationship with Japanese alliance partner Nissan.
(Bloomberg) -- A proposal is being floated atop Nissan Motor Co. for the company to revive efforts to push Renault SA to reduce its stake in the Japanese carmaker and help balance the partnership, a person familiar with the matter said.The plan would involve both companies cutting their cross shareholdings and would call for the carmakers to use the funds for joint technology investments that could bolster their alliance, the person said, asking not to be identified discussing confidential matters. It’s still early days for the proposal and details such as the timing of any stake sale are undecided, the person said.For Nissan, an agreement could help bring it a step closer to the independence sought by some executives who have long criticized the lopsided upper hand held by its French partner. Renault may be under more pressure to sell in the face of slumping sales, and automakers around the globe are facing a once-in-a-generation shift toward electrification and automated driving that will require billions of dollars of investments, even as they face shrinking car markets.JoltedAzusa Momose, a spokeswoman for Yokohama-based Nissan, said there are no plans for discussions over reducing stakes. A spokesman for Renault declined to comment and pointed to two interviews given by Chairman Jean-Dominique Senard in Davos, where he dismissed talk of shareholding changes.Nissan and Renault’s two-decade alliance, which also added Mitsubishi Motors Corp. in 2016, was jolted by the arrest of former Chairman Carlos Ghosn in November 2018. The French automaker owns about 43% of Nissan, while the Japanese manufacturer only holds 15% of Renault and zero voting rights. Any significant changes to their shareholdings would also run the risk of raising questions over the viability of the three-way alliance.While the asymmetrical relationship has stoked resentment in Japan, drawing down Nissan and Renault’s equity stakes in each other would ultimately strengthen the partnership through a more balanced relationship and focus on new technologies, the person said.New CEOThe proposal comes as Renault may be preparing to appoint a chief executive officer ahead of a crucial meeting of the board governing the alliance on Thursday. The French carmaker’s board gave the green light for Luca de Meo to become the new CEO, Le Parisien reported Sunday, without saying where it got the information.Any stake sales could free up much-needed cash for the two automakers, and also mark the first such mutual reduction since Ghosn was removed as chairman. It also risks upsetting a delicate political balance because the French government owns 15% of Renault and has sought to maintain the partnership.Last week, Senard said changing the shareholder structure “isn’t a priority” and that the focus is on strengthening industrial cooperation. Asked whether Renault could sell down its stake in Nissan, he replied that “it’s probably not the right timing in terms of the price of the shares. It could come some day.”Makoto Uchida, Nissan’s new CEO appointed amid a year of turmoil, said last month that the partnership would have to benefit all parties and that changes were needed in the pact to benefit the companies’ sales and earnings.Both companies are facing declining sales and shrinking profits. Nissan, which is conserving cash as it embarks on 12,500 job cuts globally, cut its dividend earlier in the current fiscal year and withdrew its outlook for a 40 yen-per-share payout. That was a blow to Renault, which in 2018 received 784 million euros ($864 million) in dividends from Nissan.Most automakers will have to spend heavily to keep apace with the shift to electrification and automated driving. While the likes of Volkswagen AG and Toyota Motor Corp. have enough cash on hand to do so, other automakers have been seeking partnerships and raising funds to drive development.Last week, Citigroup Inc. analyst Angus Tweedie wrote in a report that Renault’s cash strain may force it to sell some of its stake in Nissan. Investors don’t yet understand “the enormity of the challenges facing Renault, despite the shares trading at the lowest levels since 2012,” said Tweedie, who downgraded the manufacturer to a sell rating.Renault’s stake in Nissan is worth about 8.6 billion euros at the current share price and a potential disposal would be seen as a “one-off event” that would reduce earnings power and dividend, UBS analysts including David Lesne wrote in a note Monday. While they don’t see a full breakup of the alliance because “it is in the interest of both parties to keep it alive,” the analysts said this would “put at risk Renault’s viability” because Nissan has contributed about 40% of Renault earnings and all its dividend.Katsuyuki Nakai, a credit analyst at S&P Global Ratings, said any changes to the alliance that might disrupt technology sharing or cost savings would be negative for Nissan’s credit.Renault stock fell 3.2% on Monday in Paris, reinforcing its position as the worst performer among European automakers in the past year. Nissan shares fell 28% in 2019, following a 22% decline the prior year.Investors in the two companies have lost a combined $25 billion since the arrest of Ghosn, who shepherded their alliance for almost two decades. The 65-year-old executive, who denies the charges, escaped trial in Japan at the end of December and made his way to Lebanon, where he is living as a fugitive and vocally pressing his side of the story.\--With assistance from Masatsugu Horie and Ayai Tomisawa.To contact the reporters on this story: Reed Stevenson in Tokyo at firstname.lastname@example.org;Tsuyoshi Inajima in Tokyo at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Reed Stevenson, Tara PatelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Renault's board is set to meet on Tuesday to approve naming Luca de Meo, formerly the head of Volkswagen's Seat brand, as its next chief executive, Le Figaro newspaper reported on Monday. Renault declined to comment. De Meo, who stepped down from Seat earlier this month, will not take up his post at Renault until closer to July, the source added.
Renault's engineering boss will meet his counterpart at Nissan in Japan this week, two sources close to Renault said, as the carmakers seek to revive projects crucial to an alliance left reeling by the Carlos Ghosn affair. The Franco-Japanese alliance is wrestling with the fallout of the ouster and arrest of Ghosn, the architect of the partnership who now says it is at risk of collapse. Analysts say that in order to turn investor sentiment around, the firms need to make good on cost-saving joint engineering projects that have slowed since Ghosn's departure.
Renault's engineering boss will meet his counterpart at Nissan in Japan this week, two sources close to Renault said, as the carmakers seek to revive projects crucial to an alliance left reeling by the Carlos Ghosn affair. Analysts say that in order to turn investor sentiment around, the firms need to make good on cost-saving joint engineering projects that have slowed since Ghosn's departure. According to the two sources, Gilles Le Borgne, who was hired on Jan. 6 from rival automaker PSA, will meet Nissan's Tsuyoshi Yamaguchi, the Nissan executive in charge of delivering the joint engineering projects.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Renault SA could name a new chief executive officer ahead of a crucial meeting in Japan on Thursday aimed at showing that the deeply-troubled alliance with Nissan Motor Co. and Mitsubishi Motors Corp. is moving past the Carlos Ghosn era.The French carmaker’s board gave the green light for Luca de Meo to become the new CEO, Le Parisien reported Sunday, without saying where it got the information. A spokesman for Renault declined to comment.The Italian, who rose through the ranks at Volkswagen AG to run its Spanish brand SEAT, has been the front-runner for months. The executive, who recently stepped down as chairman of SEAT, is “probably in talks with Renault,” VW CEO Herbert Diess said last week in Davos. Without confirming his name, Renault Chairman Jean-Dominique Senard has said an announcement could come within days.The stakes are high for Renault and its partnership with the two Japanese carmakers. A year after Senard replaced Ghosn -- who was arrested in 2018 in Tokyo on charges of financial misconduct -- the Renault chairman is trying to draw a line under turmoil that nearly broke the two-decade-old alliance. He has said a series of measures will be unveiled at an alliance meeting at the end of the month to deepen operational ties between the manufacturers.The board of the alliance will decide on new and common projects as the partnership is moving toward greater convergence of platforms and technology in the face of the massive investment needed to develop new cars, Senard said earlier this month.Read more: Renault-Nissan Alliance Being Rebuilt After Carlos Ghosn EraGhosn held the partnership together for years despite a lopsided shareholding relationship favoring Renault that was put in place when Nissan was financially ailing. His arrest brought resentment between the companies to the surface. Senard has said changes in top management have eased the tension.The French carmaker owns 43% of Nissan, with full voting rights, while the Japanese company holds only a 15% stake in Renault and lacks the ability to vote. Ghosn has denied the Japanese charges and at the end of last year, fled to Lebanon, where he has mounted a media campaign to clear his name and lob criticism at Renault and Nissan.The companies are facing an industry slump at the same time as they are under pressure to spend heavily on electric cars. Investors don’t yet understand “the enormity of the challenges facing Renault, despite the shares trading at the lowest levels since 2012,” Citigroup’s Angus Tweedie said in a note last week as he downgraded the manufacturer to sell.To contact the reporter on this story: Tara Patel in Paris at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Lars Paulsson, Kasper ViitaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The bank set a price target of €30 on Renault shares, 23% below the closing price on Wednesday. Shares fell 5.1% on Thursday.
Renault on Wednesday said France's anti-corruption agency was carrying out checks at the company, though a source at the carmaker, which was rocked by the arrest of former boss Carlos Ghosn, said the inspection was a routine matter. There was no initial indication that the checks were explicitly linked to judicial investigations into Ghosn, the former head of the Renault-Nissan alliance arrested in Tokyo in late 2018 on financial misconduct charges which he denies. Ghosn fled to Lebanon in late December, and the anti-corruption agency's probe began shortly before then, a source familiar with the matter said.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Nissan Motor Co., Ltd. Tokyo, January 21, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Nissan Motor Co., Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Renault said on Friday it expected a slight decline in the car market in Europe, Russia and China this year after the French carmaker reported a 3.4% fall of worldwide sales in 2019 as China and Iran weighed. Sales grew by 1.3% to 1.94 million units in Europe but fell 17.2% in China. Sales also fell by 19.3% in Africa, Middle East, India and the Pacific region, Renault said in a statement.
Renault Chairman Jean-Dominique Senard said on Thursday there was a "real desire" within the top ranks of both companies for its alliance with Nissan to succeed, dismissing suggestions the partnership was on the rocks. Turmoil within the Franco-Japanese alliance, long dogged by internal rivalries, deepened following the November 2018 arrest in Tokyo of its architect and long-time boss Carlos Ghosn on charges of financial crimes, which he denies. Attempts to restore calm were dealt a fresh blow by Ghosn's dramatic flight from Japanese justice and a series of no-holds-barred allegations he has made from his refuge in Lebanon, including that he was the victim of a plot to oust him and that the alliance is now a "masquerade".
(Bloomberg) -- A Nissan Motor Co. alliance with Honda Motor Co. “feels a little wrong” but shouldn’t be out of the question if the embattled automaker ends up severing ties with Renault SA, according to LightStream Research analyst Mio Kato.Such a tie-up could appeal given the threat of Toyota Motor Corp., which has brought many smaller Japanese automakers like Mazda Motor Corp., Suzuki Motor Corp. and Subaru Corp. into its fold, Kato wrote in a note available on SmartKarma.“Honda has never been one to engage in aggressive M&A and a merger between Honda and Nissan should be unthinkable, but with Toyota’s increasing competitiveness we feel that if Nissan desired an alliance partner to replace Renault, Honda may not be entirely against the idea,” Kato said.Nissan denied reports earlier this week that it was considering ending its alliance with Renault, which has been shaken by the dramatic escape of former Chairman Carlos Ghosn from trial in Japan. It referred to the Renault alliance as a “source of Nissan’s competitiveness.”Nissan declined to comment on the report in SmartKarma and referred queries to its previous statements about its alliance with Renault. A representative for Honda said no steps, such as a capital alliance or merger, were under consideration.Kato said carmakers will be inclined to seek partnerships given their investment burden over the new few years. He suggested that the auto industry in Japan could ultimately be split into two giant groups.Replacing Renault with Honda in the alliance would raise unit volumes to about 12 million units a year from under 11 million units and improve product mix, given that Honda produces larger vehicles than Renault, according to Kato.“Nissan does have attractive possibilities to dangle in front of potential suitors and Toyota’s relentless march forward could necessitate drastic change for those on the outside in Japan,” he wrote.To contact the reporters on this story: Min Jeong Lee in Tokyo at email@example.com;Tsuyoshi Inajima in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, ;Young-Sam Cho at firstname.lastname@example.org, Will DaviesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TOKYO/PARIS — Shares in Renault recovered some lost ground on Tuesday after the French carmaker and its Japanese partner Nissan rejected media reports that their alliance was in danger of being dissolved. Some have openly questioned whether the alliance can survive without disgraced former CEO Carlos Ghosn to keep the two partners happy. Renault shares fell to a six-year low on Monday after rumors circulated that its alliance with Nissan was in jeopardy.
French Finance Minister Bruno Le Maire said on Tuesday he expected carmaker Renault to name its new chief executive in a few days. Le Maire also said on French CNews TV that media reports that some Nissan executives wanted to break up the alliance with Renault were "malicious". Nissan said on Tuesday it was "in no way" considering dissolving its alliance with Renault and Mitsubishi Motors and that the alliance was the source of Nissan's competitiveness.
(Bloomberg) -- Nissan Motor Co. said it is in no way considering the dissolution of its alliance with Renault SA, which was shaken even further by the dramatic escape of former chairman Carlos Ghosn from trial in Japan.“The alliance is the source of Nissan’s competitiveness,” the Yokohama-based company said in a statement Tuesday, pushing back against reports that its executives have looked at the possibility of breaking with the global carmaking partnership. “Through the alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies.”The future of the alliance, created two decades ago when Renault took a stake in a near-bankrupt Nissan and which added Mitsubishi Motors Corp. in 2016, was thrown into question over the past year after Ghosn’s arrest. The auto executive, who was detained in November 2018 and fled at the end of December to escape trial in Japan on charges of financial crimes, played a pivotal role in keeping the alliance together.In a news conference last week, the first since Ghosn’s dramatic escape to Lebanon, the former chief executive officer of Nissan and Renault trashed the recent performance of the carmakers. Indeed, the two have struggled financially — their shares were the worst performers among major automakers last year — and have been drifting apart at a time when the costs of electrification and autonomous driving are pressuring incumbent carmakers to team up or consolidate.It’s unclear how feasible any separation would be given that Renault holds 43% of Nissan’s shares as its biggest shareholder, while Nissan owns 15% of its French partner.Even so, Nissan has been exploring the pros and cons of sustaining the alliance, particularly when it comes to engineering and technology sharing, said a person familiar with the matter, who asked not to be identified discussing confidential matters. Those studies predate Ghosn’s escape from Japan and were preliminary, so no decision has been made, the person said.The discussion over the future of the alliance underscores the fragile state of the relationship between the Japanese and French auto giants after the arrest and later escape of Ghosn, who balanced the world’s largest automotive alliance for years.The board governing alliance agreed in November to work to “significantly enhance and accelerate the operational efficiency of the alliance for the benefit of the member companies, including action plans to maximize the contribution of the alliance to each company’s strategic plans and operating profit,” Nissan said in Tuesday’s statement.(Updates with background.)To contact the reporter on this story: Reed Stevenson in Tokyo at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Reed Stevenson, Gearoid ReidyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.