apan’s Nissan Motor Co lifted its full-year profit forecast on Wednesday, buoyed by higher-margin sales and a weaker yen, and reiterated talks with top shareholder Renault about revamping their alliance were “open and constructive”.

Upbeat results – the automaker reported a 45% jump in quarterly profit – came against industry-wide worries about higher costs and chip shortages and, for Nissan, uncertainties about the future of the partnership with France’s Renault.

Renault on Tuesday unveiled a sweeping overhaul of its businesses, saying it would set up a joint venture with China’s Geely (0175.HK) for gasoline engines and hybrid technology and spin off its electric vehicles unit next year.

It wants Nissan to invest in the new electric unit. The talks are ongoing and “open and constructive,” Nissan Chief Executive Makoto Uchida told a briefing.

But it remains to be seen how they play out. The companies are also renegotiating their equity ties, which currently see Renault owning a controlling 43% of Nissan and the Japanese company holding only a 15% non-voting stake in Renault.

People with knowledge of the talks have said Renault’s stake in Nissan could be reduced to 15%.

While Renault said its new gasoline and hybrid unit could supply powertrains to Nissan, that ambition could also raise complications, according to Morningstar analyst Richard Hilgert.

“We like the potential for increased economies of scale,” he said in a note to clients. “But this may present issues with alliance partner Nissan, which has also contributed (internal combustion engine) and hybrid technologies to Renault.”