Renault and Nissan have revealed plans to re-forge their car manufacturing Alliance on a new platform of balanced governance which will underpin electric vehicle (EV) and software partnerships.

A statement issued jointly by the French and Japanese car manufacturers this morning (January 30) revealed the new governance plan and cross-shareholding as part of a move that will aim to deliver “accelerated operational efficiencies”

The new agreements were described as “an important milestone in its discussions on defining new foundations for their partnership”, following several months of constructive discussions.

Still set to be finalised, and remaining subject to the approval of the boards of directors of Renault Group and Nissan, the changes will see Renault Group transfer 28.4% of Nissan shares into a French trust in a move that would see the OEMs retain a 15% cross-shareholding.

They would both be able to freely exercise the voting rights attached to their 15% direct shareholding, with a 15% cap, the statement said.

However, the voting rights attached to the Renault Group shares tied-up in a French trust would be “neutralized” for most of the decisions, today’s statement said, adding: “The economic rights (dividends and shares’ sale proceeds) would still entirely benefit to Renault Group until such shares are sold.”

Renault Group would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault Group in a coordinated and orderly process, but it would have no obligation to sell the shares within a specific pre-determined period of time, the statement added.

The Renault Group and Nissan said jointly that the ambition of their new agreement was to strengthen the ties of the Alliance and maximize value creation for all stakeholders with a three-stage approach.

This includes: key projects in Latin America, India and Europe; enhancing strategic agility with new initiatives that partners can join; and Nissan’s investment in Renault EV and software venture Ampere with the aim of to become a strategic shareholder.