Renault, Nissan to hold crunch talks over Geely tie-up, report says

Renault CEO Luca de Meo will hold talks with his Nissan counterpart Makoto Uchida over the French automaker’s plan to sell part of its combustion engine business to China’s Geely Automobile Holdings, the Financial Times reported.

The plan is opposed by Nissan, which does not want technology that it jointly developed with Renault shared with a Chinese company, sources told the newspaper.

Renault said earlier this year that it was exploring ways to split off its electric-vehicle and internal combustion activities, as either partnerships with other companies or separately listed companies, to help finance its transition to electrification

The proposal will require Nissan’s consent because the two alliance partners share technology, the Financial Times said.

De Meo will hold talks with Nissan’s Uchida this weekend, the paper said.

The Wall Street Journal said on Friday that Nissan is pressing Renault to sell part of its 43 percent stake in the Japanese automaker as part of a reorganization of the alliance between the two companies.

In return, Nissan would invest in Renault’s new EV business, sources told the paper.

The Financial Times said executives from the two automakers will discuss reducing Renault’s stake in Nissan to 15 percent.

Geely and Saudi oil giant Aramco have been in talks about taking stakes in Renault’s combustion engine business, reports said last month.

In May, Renault sold 34 percent of its South Korean subsidiary to Geely. Renault will also develop with Geely hybrid vehicles produced at its plant in Busan, South Korea..

Renault is expected to announce details of the separation of the internal-combustion and electric vehicle units at a capital markets day scheduled for Nov. 8.