Photo/Illutration Executives from Nissan Motor Co. and Renault hold a news conference on Dec. 6, 2023, in Paris. (Asahi Shimbun file photo)

In a significant restructuring of their longtime partnership, Nissan Motor Co. and Renault will reduce their mutual stake from the current 15 percent to 10 percent, Nissan announced on March 31.

The 5 percent reduction in shares will allow both automakers to prioritize each other as preferred buyers for the stakes being sold.

Nissan also revealed it would cancel its planned investment of up to 600 million euros (97.2 billion yen, or $649.6 million) in Ampere, Renault's electric vehicle subsidiary in Europe. 

This decision is part of struggling Nissan’s broader efforts to rebuild its operations and turn around its fortunes.

The business performance of both Renault and Ampere has improved, making the investment unnecessary, according to Nissan.

Instead, the Japanese automaker plans to outsource the development and production of its compact EV model to Ampere.

In 2023, the two automakers agreed that Renault would reduce its ownership stake in Nissan from 43 percent to 15 percent, resulting in equal mutual ownership with Nissan holding a 15 percent stake in Renault.

The latest move marks a further loosening of the alliance between the two companies, which dates to 1999. The announcement came a day before new Nissan CEO Ivan Espinosa's appointment took effect. 

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