Nissan Motor Co. Ltd. and Renault SA plan to overhaul the rules that govern their alliance amid growing dissatisfaction on both sides, the Nikkei Asian Review reported Sept. 10, citing French-language newspaper Les Echos.
The carmakers reportedly want to scrap the agreement known as RAMA altogether and create a new one that will hopefully satisfy both companies. Negotiations between the two began around summer but it is not clear when a deal will be reached, according to the report.
Nissan is said to be unhappy with the arrangement as it gives Renault, the smaller of the two automakers, the lead role in the alliance. Meanwhile, Renault reportedly complains it cannot fully exercise its rights under the agreement even though it is Nissan's largest shareholder.
Nissan has been calling for a more equal relationship with Renault and reportedly wants to cut the French carmaker's 43% stake in the company by around 20% to 25%.
The proposed revamp of alliance rules follows the resignation of Nissan CEO Hiroto Saikawa days after he admitted to being overpaid.
Meanwhile, Renault is now considering including Nissan in its merger talks with Fiat Chrysler Automobiles NV, the Nikkei reported. Previous talks between Renault and Fiat Chrysler, which fell through in June, envisioned an equal merger between the two carmakers, with Nissan left out.
The Japanese automaker was not in favor of the plan, saying the move could weaken its clout in the alliance.
Nissan and Renault did not immediately respond to S&P Global Market Intelligence's requests for comment.
