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RENAULT is shaking up its business plan with a proposal that could see it sell its 43 per cent stake in Nissan, cop a potential $US2.4 billion ($A3.3b) liability as it pulls out of Russia and sells its 68 per cent share in Lada-maker AvtoVAZ, and puts its future in building EVs.

Selling its share in Nissan – worth $US7.6 billion ($A10.5b) – would also ease tensions with Nissan that came to a head with the charging of former CEO Carlos Ghosn in November 2018 and his subsequent escape from Japan to live in Lebanon.

Renault may not sell all its shares. It could reduce its interest to 15 per cent, the same level as Nissan’s ownership of Renault, which would yield about $US5 billion ($A7b) at today’s share prices.

In an article in Automotive News, analysts contacted said it would be unlikely that Renault would sell the entire holding, as that would weaken the alliance.

The plan could see Nissan buy back some or all of its 1.83 billion shares, or see the share being bought by an independent group.

Funds from the rumoured exit strategy are likely to go to Renault’s plan to separate its EV business and potentially publicly list it as a new entity, as early as late 2023.

Renault and Nissan formed their alliance in March 1999, adding Mitsubishi after it was taken control of by Nissan in 2017. Plans to permanently merge the three were in place in 2018 and stymied by the arrest of CEO Ghosn.

Renault Zoe EV

Renault has a 43.4 per cent voting stake in Nissan and Nissan has a weaker 15 per cent non-voting stake in Renault, effectively giving Renault control of the Alliance.

Automotive News notes that a sale of the Nissan share could help finance major structural changes that Renault CEO Luca de Meo hinted at in February, including separating the EV business.

That would leave the current business able to take on a partner, with Volvo-owner Geely Holding Group mentioned because Renault this year signed a joint production deal for a factory in South Korea.

The Korea Herald newspaper said the factory is owned by Renault Samsung Motors which is being dissolved this year after Samsung decided to quit the car business.

Samsung Card, which owns the 19.9 per cent of the joint venture (Renault owns the remainder), announced the end of the partnership in August last year and is now finalising asset sales.

Renault is also dealing with exiting its second-biggest market, Russia, following Russia’s invasion of Ukraine.

Automotive News said Renault will take a non-cash charge amounting to the $US2.4 billion ($A3.3b) value of its assets in Russia, including a manufacturing plant in Moscow.

Nissan Ariya EV

It’s also assessing options for its share in AvtoVAZ and may look at transferring ownership to a local investor.

The move to create a separate EV business could include Nissan assets. Both share electrification technology and architecture.

Nissan has not been left out in the cold. Renault chief financial officer Thierry Pieton, speaking to analysts last week, said “Nissan is in the loop.”

“This is obviously something that we want to discuss with them,” he said.

Automotive News said that Nissan is in a better position than a year ago to buy back its shares, should Renault decide to sell.

Nissan has $US15.6 billion ($A21.6b) in cash and equivalents on hand, and fiscal year operating profit is on track to be positive for the first time since 2019.

Nissan’s chief operating officer and a former Renault Group executive, Ashwani Gupta, is expected to have meetings this week in Paris with Mr de Meo ahead of a broader meeting between Renault and Nissan’s executives in Tokyo next month.

By Neil Dowling

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