Photo: Daimler AG
By coincidence, when I first started reading Daimler's latest press release, Mos Def's (now Yasiin Bey) “I'm leaving” was playing in my headphones, but it looks like the Germans have no plan of getting out of their partnership with the Renault-Nissan Alliance.
That said, Daimler AG's Supervisory Board took a surprising decision to transfer the shares that the German company has in Renault S.A. and Nissan Motor Co. Ltd. to the pension assets of Daimler AG.
Apparently, the 3.1 percentage that Daimler had in Renault-Nissan is worth around 1.8 billion euros (approx. $2 billion), and the transfer should also translate into a one-time EBIT growth of around 500 million euros ($553 million) in 2016 for the Germans.
Dieter Zetsche, the Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars really wanted to make everything clear concerning the company's relationship with the Renault-Nissan Alliance: "With this contribution we are again reinforcing our pension assets. Our aim in this is to safeguard our employees' pension benefits for the long term. Regardless of the share transfer we will continue the successful strategic alliance with the Renault/Nissan Alliance. Besides the ongoing projects one of the major milestones is the start of a joint production with Nissan for the upcoming premium compact car generation in Mexico.”
Both Renault and Nissan were fine with the shares transfer, especially since the French Government recently increased its own stake in Renault, while also proposing to add a law that grants double voting rights to long-term shareholders like itself.
Daimler's and Renault-Nissan's partnership started six years ago, and all three companies vowed to share development costs, engines, and even small-car platforms to reduce overall costs. The three companies have saved over 4 billion euros ($4.4 billion) since the partnership was initiated. The Renault-Nissan Alliance will continue to keep its stake of 3.1 percent in Daimler.
Despite how it first looked, the cooperation between the three will not only carry on, but it will also be expanded in the following years.
Apparently, the 3.1 percentage that Daimler had in Renault-Nissan is worth around 1.8 billion euros (approx. $2 billion), and the transfer should also translate into a one-time EBIT growth of around 500 million euros ($553 million) in 2016 for the Germans.
Dieter Zetsche, the Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars really wanted to make everything clear concerning the company's relationship with the Renault-Nissan Alliance: "With this contribution we are again reinforcing our pension assets. Our aim in this is to safeguard our employees' pension benefits for the long term. Regardless of the share transfer we will continue the successful strategic alliance with the Renault/Nissan Alliance. Besides the ongoing projects one of the major milestones is the start of a joint production with Nissan for the upcoming premium compact car generation in Mexico.”
Both Renault and Nissan were fine with the shares transfer, especially since the French Government recently increased its own stake in Renault, while also proposing to add a law that grants double voting rights to long-term shareholders like itself.
Daimler's and Renault-Nissan's partnership started six years ago, and all three companies vowed to share development costs, engines, and even small-car platforms to reduce overall costs. The three companies have saved over 4 billion euros ($4.4 billion) since the partnership was initiated. The Renault-Nissan Alliance will continue to keep its stake of 3.1 percent in Daimler.
Despite how it first looked, the cooperation between the three will not only carry on, but it will also be expanded in the following years.
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