Renault and Nissan tie the knot tighter with new deal

The partners plan to introduce cross-shareholdings. Renault will increase its stake in Nissan by just under 8 per cent to 44.4 per cent and the Japanese manufacturer will take a 15 per cent share in Renault. The alliance strategy includes the creation of a joint management structure. By 2010 the two car makers will have integrated their production and purchasing. The French government is expected to support the move to increase ties between the companies by reducing its stake in Renault by more than 15 per cent to 25 per cent. In 1999 Renault installed Carlos Ghosn as president of Nissan and he moved the flagging manufacturer into profit. By contrast Renault has warned that its operating profits could fall below the 1.6 per cent achieved in the first half of the year. Last year Nissan sold 2.6 million vehicles – 200,000 more than its partner.