According to Bloomberg, Nissan Motor will buy back shares worth 79.
9 billion yen (approximately US$551 million) from Renault Group as part of an agreement to rebalance the alliance partnership between Nissan Motor and Renault Group.
Last year, Nissan Motor and Renault Group decided to reshape their decades-old alliance.
, Photo source: Nissan Motor, On September 26, Nissan Motor said it plans to use its net cash position to repurchase approximately 195.
5 million shares of shares and will cancel all previously acquired shares on October 3.
, Renault Group said in a statement that the deal would give it up to 494 million euros (US$551 million) in funding to develop electric vehicles and better compete with China carmakers entering Europe.
The funds will also help Renault Group achieve its ambition to restore investment grade ratings.
, At the end of last year, Renault sold its first batch of Nissan shares for 765 million euros and sold its second batch of shares in March this year.
Renault Group plans to reduce its stake in Nissan Motor from the initial 43% to 15%.
, On September 26, Tatsuo Yoshida, senior automotive analyst at Bloomberg Intelligence, said: “Given Nissan’s business conditions and cash liquidity, I think the company will gradually embark on a plan to repurchase and cancel shares instead of buying back all or a large number of shares in one go.
“, In July this year, Nissan Motor significantly lowered its operating profit forecast for the fiscal year 2025 (April 1, 2024 to March 31, 2025) to 500 billion yen due to weak sales in the Japanese and North American markets.
In the China market, Nissan Motor has also encountered huge challenges and is facing increasingly fierce competition from local China electric vehicle manufacturers led by BYD.
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