“The situation is in no way comparable to that of Volkswagen.” The French Economy Minister, Emmanuel Macron, is certain of this, but the storm that has unleashed on Renault shows no sign of abating.
1. THE NEWS
On Thursday 14 January, France Presse revealed that on 7 January, investigators from the French anti-fraud service seized the computers of some of the car manufacturer's offices. According to the CGT Renault syndicate of the Lardy site, cited as a source by the news agency, the sectors involved (“homologation and development of motor controls”) suggest that the searches are linked to the consequences of the scandal of emissions rigged by Volkswagen.
In the wake of this news, on Black Thursday of the car, the Renault share collapsed by 10% (but had gone as far as to leave the field up to 20%), losing 2,3 billion of capitalization on the Paris Stock Exchange in a single session . Today, mid-morning, the French company's shares are down 2,15%, at 76 euros (only last January 12 they were worth more than 87 euros).
2. THE COMPANY'S REPLY
Renault explained that "the investigators have decided to carry out additional checks in the factories" and that no falsification of emissions data has so far emerged from the ongoing tests. The company has ensured that it is "fully cooperating with the further ongoing investigations" and that "the Direction Générale de l'Energie et du Climat (Dgec), pilot interlocutor of the independent Technical Commission on behalf of the French Ministry of Ecology, believes as of now that the procedure in progress would not show the presence of a rigged software on Renault vehicles”.
3. THE EXPLANATIONS OF THE GOVERNMENT
According to the French Minister of Environment and Transport, Ségolène Royal, CO2 and nitrous oxide have been found to "exceed the limits set by the regulations", but no "illegal software" to trick emissions has been found on Renault vehicles and therefore it is not about fraud. The minister specified that two other foreign brands would also not comply with the regulations on exhaust gases.
Last month, after Volkswagen's Dieselgate, Renault announced an investment of 50 million euros to reduce the gap between emissions under homologation conditions and in real conditions.
4. THE OFFENDING ENGINE
The engine at the center of the investigation seems to be the Renault Energy 1.600 dCi, present on the market in two power levels (130 and 160 horsepower) and mounted on various models of the Renault-Nissan group (Renault Espace, Megane, Talisman and Nissan Qashqai, for example example), but also on Daimler cars, such as the Mercedes C-Class.
5. THE ALLIANCE WITH NISSAN
If the allegations were confirmed, the alliance between Renault and Nissan, which is already not in excellent health, could enter a crisis. The collaboration between the two manufacturers began in 1999, when the French company was awarded 43,4% of Nissan, giving only 15% (and no voting rights on the board) to the Japanese company. Since then, however, Nissan has grown much more than Renault (today it is worth at least double) and by now the balance of power between the two partners seems excessively unbalanced in favor of the French.
The real controversy, however, erupted last April, when the French government acquired a further 4,7% of Renault (of which it already had 15%) to secure a double right to vote on the board. At that point Nissan asked to increase to 25% of Renault to return to being the second largest shareholder and exercise the right to vote. The Yokohama house is concerned above all by the participation of the French state in company management, which is why it is trying to rebalance management between French and Japanese components. In general, the alliance with Nissan has been decisive for the survival of Renault and any breakup would probably be fatal for the French manufacturer.
