Shares of Renault recovered from recent losses on Tuesday, after the French automaker and its Japanese ally, Nissan Motor, denied media reports stating that the two companies face the risk of splitting up.
“Nissan is in no way considering dissolving the Alliance,” Nissan Motor said in a statement today, speaking of the partnership between their company, Renault and Mitsubishi Motors.
Rumors about the possible dissolvement of the 20-year old partnership sent shares of two car giants to the lowest levels in the last couple of years. Shares of Renault hit a new 7-year low today, while Nissan stock trades at the lowest levels since 2011.
Talking about the alliance between his company and Nissan, Jean-Philippe Senard, the chairman of Renault, said the partnership is “solid, robust, everything but dead,” in a recent interview.
The partnership includes shared ownership stakes, as well as technology and production facilities. Resource-sharing among the three companies generated many financial advantages, saving them over €5 billion ($5.7 billion) a year in costs, as stated by the companies.
Nissan also pointed out the benefits of maintaining the alliance with Renault and Mitsubishi today.
“The Alliance is the source of Nissan’s competitiveness. Through the Alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies,” the company said.
French Minister of the Economy and Finance Bruno Le Maire said the media reports that talk about the possible split were “malicious.”
In an interview with a French media outlet, the Minister also said he expected Renault to appoint a new CEO in the next few days as a replacement for Thierry Bollore, who was appointed by Carlos Ghosn.
Fears concerning the future of the alliance arose after the arrest of Carlos Ghosn in November 2018 in Japan. Ghosn was doing a particularly good job in keeping the Japanese-French carmaker partnership together.
Those concerns took an additional push after Ghosn ran away from Japan, where he was awaiting trial on charges of financial mismanagement. Ghosn denied the charges and fled to Lebanon.