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Renault to boost Nissan stake
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February 28, 2002: 6:50 a.m. ET
French carmaker to spend $1.6 billion on increasing stake in Japan's No. 3
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LONDON (CNN) - France's Renault plans to spend 215.9 billion yen ($1.6 billion) on increasing its stake in Nissan Motors of Japan.
Renault, France's second-largest car maker, said it will pay 400 yen per Nissan share and increase its stake to 44.4 percent on March 1, as the two car makers strengthen their alliance.
Nissan, Japan's third biggest car maker, and Renault are leading a push to curb manufacturing costs by sharing technology and simplifying production. The two car makers announced last October that Renault would raise its current 36.8 percent stake and Nissan would buy a 15 percent share in Renault.
Nissan Chief Executive Carlos Ghosn, a former Renault executive, is trying to return the once troubled Japanese car maker to the No. 2 spot. Known as "Le Cost Cutter" he joined Nissan after Renault bought 37 percent of the company in March 1999.
Ghosn said on Tuesday that his company is focusing on boosting its profitability rather than claiming market share. He started a three-year overhaul of Nissan in October 1999, leading an impressive rebound to profitability.
He again said that the year through March would see Nissan post a record profit.
Nissan also unveiled it's first joint venture car with Renault, the remodeled March or Micra, as it is known in Europe. The compact car's curved lines resemble the remodeled Volkswagen Beetle. It is also the first product of a three-year partnership between the two companies.
Nissan's stock rose 3.8 percent to close at 873 yen in Tokyo. The stock has rallied for four sessions on bullish comments from its chief executive, the launch of a new vehicle, ratings upgrades and a weaker yen.
Renault's stock, which has declined more than 20 percent over the last 12 months, slipped 0.5 percent to  49.58 in midday Paris trading on Thursday. 
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