Renault and its Japanese strategic partner Nissan Motor are said to be discussing a realignment of their cross-shareholdings in an effort to reduce the French government’s control over the alliance.

According to a report in Japan's Nikkei business daily, the two companies are considering cutting Renault’s stake in Nissan to below 40% from the current 43.4%. This, the report suggests, would give Nissan voting rights in Renault under French corporate law.

The restructuring is understood to have been discussed initially at a Renault board meeting in Paris in response to the recent hike in the French government’s stake in Renault from 15% to 19.7% - a move opposed by the boards of both Renault and Nissan.