Renault shares hit their lowest level in six years on Monday after a media report said that Nissan was speeding up work on secret contingency planning in anticipation of a possible separation from the French automaker, in the latest indication that the fall of former President Nicolas Carlos Ghosn disturbed the alliance between the two companies since 20 years.
By 1027 GMT, shares fell 3.7 percent, topping the French CAC 40 and Stoxx 600 European indexes.
By 1027 GMT, shares fell 3.7 percent, topping the French CAC 40 and Stoxx 600 European indexes.
The Financial Times reported on Sunday, quoting several sources, that the plans include preparing for a complete separation of engineering and manufacturing activities, as well as a change to the Nissan Board of Directors.
The newspaper added that the company has been accelerating work on the emergency plan since the dramatic escape of Ghosn, the former head of the Renault and Nissan alliance, from Japan in late December.
The coalition has been in turmoil in its administration since Ghosn was arrested in Tokyo in November 2018 on charges of financial crimes, charges that Ghosn denies. He was awaiting trial in Japan when he fled to Lebanon.
"We really believe that the relationship between (Renault and Nissan) and consequently their alliance has cracked and perhaps to the point that it cannot be repaired," wrote Arnett Elinghurst and Chris McNally, analysts at Evercor ISI, in a research note on Monday. And they gave the French car company a rating of “performance below market performance”.
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