Nissan to invest US$663 million in Renault EV unit Ampere as Franco-Japanese alliance is rejigged
- Nissan and Renault formalise deal to reduce French carmaker’s stake in Japanese partner to 15 per cent
- Renault CEO Luca de Meo is revamping the company’s corporate structure to better tackle the shift to electric vehicles and bolster profits
Nissan will invest as much as €600 million (US$663 million) in the business, the companies said in a statement on Wednesday. Separately, the pair formalised a deal for Renault to reduce its ownership of Nissan to 15 per cent by placing the rest of its current 43 per cent shareholding in a French trust.
“These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value,” Renault CEO Luca de Meo said in the statement. “They give us the strategic agility that we need more than ever in today’s rapidly evolving environment.”
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“It is difficult for us to do business in Europe alone, so investing in Ampere gave us an opportunity to connect with other companies,” Nissan CEO Makoto Uchida said.
Mitsubishi said this week it will decide on investing in Ampere by the end of 2023 at the earliest.
The agreement hands the partners more freedom to pursue other projects. Renault is pooling its legacy combustion-engine assets with China’s Zhejiang Geely Holding and is working with Qualcomm on semiconductors. Nissan is shifting to EVs and cutting costs as part of a plan to make more money from each car it sells.
The companies presented an in-principle deal to rebalance the alliance in February, but finalising it dragged on longer than expected, with weeks spent trying to iron out sticking points on intellectual property as well as the Ampere investment. Renault in June pushed back the timing of the EV arm’s IPO following investor feedback.
Over the years, cultural differences between France and Japan led to frequent misunderstandings, further exacerbating the mutual suspicion that had weighed on the alliance. Talks almost collapsed late last year amid a power struggle within Nissan. They accelerated after the departure of a key Nissan executive, Bloomberg reported last month.
De Meo has worked closely with Nissan CEO Uchida to identify a series of common projects to rekindle the relationship. Those projects are proceeding well, de Meo said last month.