France & Japan agree to deepen cooperation on auto technology

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France and Japan said this week that they have made an agreement to share information and look at deeper collaboration in next-generation automotive technology. The move has been touted by some as a means of repairing the tense alliance between Renault and Nissan.

Japan's trade ministry released a statement saying that the two governments were to start talks to boost cooperation in areas such as automated driving, electric vehicles (EVs) and batteries.

A memorandum of cooperation released by the ministry also said the two countries also agreed to discuss policy on information sharing in support of a transformation of the auto industry, as well as the exchange of ideas and opinions about potential future areas of cooperation in industrial policy for the industry. 

The need to support the Renault-Nissan alliance was giving backing by Japanese Trade Minister Hiroshige Seko and French Finance Minister Bruno Le Maire.

Automakers globally have been struggling to keep up with the speed of growth and change in an industry that has been rapidly transformed by the rise of EVs, autonomous driving and ride-hailing.

The twenty-year alliance between Nissan and Renault, of which the French state owns 15% of, has been under strain following the scandal, arrest, and subsequent ousting of Carlos Ghosn, the former chairman, as well as issues over control and voting rights.

Despite Nissan being significantly larger, with almost double the market share, Renault has effective control as a result of the large voting stake in Nissan as well as its board seats. Nissan has a non-voting stake in Renault. 

The alliance came under further strain in 2014 when France passed the "Florange law", which doubled the voting power of long-term shareholders, giving the French state more voting power and control than its 15% would have otherwise allowed.

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