The potential compromise would restrict the use of joint intellectual property in cutting-edge fields, such as electric vehicles and self-driving technology, by Renault’s new EV unit, Nikkei learned on Tuesday. Nissan executives including CEO Makoto Uchida outlined Renault’s proposal to outside directors on Monday.
Renault also would consider paying to use certain joint IP, which now can in principle be used freely by both sides. Any use of joint IP by Renault’s new unit would need to ensure it does not put the Japanese automaker at a disadvantage.
Outside directors responded positively to the proposal and said the two sides were making progress toward creating a framework for handling joint IP.
The negotiations could have broken down, but the Renault proposal marks a “big step forward,” said one director who attended the Monday meeting.
Access to intellectual property has proved an obstacle toward an agreement on balancing ownership levels in their decadeslong alliance. Nissan is concerned that sensitive technology could reach companies like US chip designer Qualcomm, which is taking a stake in Renault’s new EV unit, and Google, which Renault is partnering with to develop a “software-defined vehicle.”
Nissan leadership also informed outside directors Monday of a letter sent to Japan’s government from the French government, Renault’s top shareholder.
The letter from economy and finance minister Bruno Le Maire said France would not oppose Renault lowering its stake in Nissan. Nissan directors expressed approval for the clarification of the French position.
After discussing these developments, Nissan’s outside directors on Monday greenlighted the automaker to enter final negotiations with Renault. The two sides will continue discussions on lowering the French automaker’s stake in Nissan to 15% from 43%, matching the Japanese partner’s stake in Renault, as well as an investment by Nissan in Renault’s EV unit.
Details on Nissan’s investment and involvement in Renault’s EV unit have yet to be decided on. Several outside directors predicted that these final talks will take some time. Nissan has yet to schedule any board meetings for approving an agreement.
Renault CEO Luca de Meo is expected to meet with representatives from Nissan and Mitsubishi Motors, the third member of the alliance, in Japan around Jan. 26.