Renault, Nissan Form Alliance

Related Stories Report: Renault chief in Tokyo to seal Nissan deal. (March 25) Renault, Nissan discuss alliance. (March 19) DaimlerChrysler breaks Nissan talks. (March 10) (Note: To return to this story, click the "Back" button on your browser.)

PARIS — France's Renault SA has become the first western truck and car builder to establish a major foothold in the Japanese automotive market with a $5.4 billion investment in the country's second largest carmaker, Nissan Motor Co.

The investment gives Renault a 36.8% stake in the car maker, and a 22.5% stake in heavy truck manufacturer, Nissan Diesel.

On the truck side, the agreement is a big boost to Renault's global ambitions. With its U.S. subsidiary, Mack Trucks, and European operations, Renault's entry into the Asian market gives it a substantial presence in all the world's major truck markets.

Nissan Diesel, which is Japan's third largest heavy truck builder, was pursued last year by DaimlerChrysler, the world's biggest truck manufacturer.

Negotiations to buy Nissan's stake in the truck builder were later expanded to talks of acquiring Nissan's main car manufacturing business. DaimlerChrysler broke off the talks in early March, and within a week Renault and Nissan had reached an agreement, which was eventually signed March 27 in Tokyo.

Renault has released no details about how the alliance with Nissan Diesel will work, or what synergies if any there will be. Renault spokeswoman Christine Rahard explained, the alliance is primarily "a car deal". A spokesman for Renault's truck manufacturing division in Paris referred all questions about the alliance to Rahard.

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