The move is part of a tough alliance rebalancing deal between the two companies, as Nissan now owns 15% less of Renault.

The Renault-Nissan-Mitsubishi Alliance, originally known as the Renault-Nissan Alliance, is a Franco-Japanese strategic alliance between the automakers Renault, Nissan, and Mitsubishi Motors, which together sell more than 1 in number 9 cars in the world.

Renault and Nissan have been strategic partners since 1999, employing nearly 450,000 people and controlling eight major brands: Renault, Nissan, Mitsubishi, Infiniti, Renault Korea, Dacia, Alpine, and Venucia. The Automotive Group sold 10.6 million vehicles worldwide in 2017, making it the world’s leading light vehicle group.

The Alliance took on its current name in September 2017, a year after Nissan acquired a majority stake in Mitsubishi and subsequently made Mitsubishi an equal partner of the Alliance.

The strategic partnership between Renault, Nissan, and Mitsubishi is not a merger or acquisition. The three companies are brought together by a cross-sharing arrangement.

This structure was unique in the automotive industry during the consolidation trend of the 1990s and was later used as a model for General Motors and PSA Group, Mitsubishi, as well as Volkswagen and Suzuki Corporation, despite the failure of this last combination. The Alliance itself has significantly expanded its reach, forming additional partnerships with automakers including Daimler in Germany and Dongfeng in China.

French carmaker Renault will reduce its ownership percentage in partner Nissan to 15% from 43%. The move is part of a not-so-easy alliance rebalancing deal between the two companies, with a 15% stake that will roughly equal Nissan’s stake in its French partner.