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Renault has a 20-year alliance with Nissan, but relations between Nissan and Renault have been strained since the arrest of former Nissan chairman Ghosn, deepening suspicions between the two companies.

It is understood that Renault owns 43% of Nissan, while Nissan owns 15% of Renault's non-voting shares. Nissan has been demanding a reduction in Renault's stake, but it has been resisted by Renault.

As a result of the downturn in the global car market, Nissan and Renault have seen a serious decline in sales in several markets, and profits and performance are starting to get worse.

According to media reports, Nissan submitted a document to the Tokyo Stock Exchange, which revealed that Nissan would withdraw its 40 yen dividend plan for US shares. Renault, which owns a 43% stake in Nissan, fell 3.4% in Paris.

It is understood that this is not the first time Nissan has cut its dividend plan. In May, Nissan cut its year-end dividend from 57 yen to 40 yen. Renault, which owns 43% of Nissan, gets the most important income from Nissan's profit commission, including dividends. Some analysts predict that Renault's annual revenue could fall by 20% and by $2.5 billion within three years. If Nissan makes a further reduction, Renault's revenue could be reduced by billions of dollars.

Renault is in a grim position, with sales of 11.3 billion euros in the third quarter, down 1.6 per cent from a year earlier. Renault said that due to the volatile results in the third quarter, sales are expected to fall by 3 per cent this year, and the target of operating profit margin has been adjusted to 5 per cent, due to the difficult situation faced by markets such as Turkey and Argentina. and car sales have fallen widely.

Nissan's sales and performance have also declined since Ghosn time, with operating profit of 30 billion yen ($275 million) from July to September, down 70 percent from 101.2 billion yen in the same period last year, according to Nissan's second-quarter results. In terms of sales, Nissan sold 1230047 vehicles in China from January to October this year, down 0.6% from the same period last year.

Nissan cut its 2019 forecast due to an unnecessary decline in sales and performance. Nissan forecasts global sales of 5.24 million vehicles in fiscal year 2019, down 5.45 from previous expectations; revenue of 10.6 trillion yen, down 6.2% from previous expectations; and net profit of 110 billion yen, down 35.3% from previous expectations.

Nissan said the decline in profits was mainly due to falling sales, exchange rate fluctuations and increased raw material costs. Some analysts believe that Nissan's current profit decline is due to the fact that the company is facing management chaos after former chairman Carlos Ghosn was dismissed.

In response to the dilemma, Nissan is embarking on a global restructuring plan, which will cut 12500 jobs, or 10 per cent of the total, worldwide in 2022. In addition to reducing the number of workers, it will also reduce its product lines worldwide and reduce product categories by 10% by March 31, 2022, in order to reduce costs and increase operating rates.

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