Nissan will invest up to $663M in Renault’s Ampere EV spinoff

Nissan will invest up to $663M in Renault’s Ampere EV spinoff

Warning: Trying to access array offset on value of type bool in /mnt/BLOCKSTORAGE/home/ on line 123

Nissan and Renault’s Ten Year Alliance Gets a Rebalance

Nissan and Renault, in business together since 1999, proved they weren’t afraid to shake things up. On Wednesday, they announced an agreement to restructure their long-term alliance. Nissan has agreed to invest up to 600 million euros in Renault’s electric vehicle spinoff, Ampere, with the hope that the arrangement will unlock hundreds of millions of euros from the three-way partnership of Renault, Nissan and Mitsubishi Motors.

Under the reworked alliance, Renault will bring down its Nissan shares from a controlling 43 percent to a 15 percent stake. Meanwhile, Nissan will convert its non-voting stake to one held with voting rights. The companies also plan to complete the definitive agreements by the fourth quarter of 2023, a significant milestone for two companies that have worked under the same roof for the past 10 years.

The move comes after the arrest and ouster of the former alliance chairman, Carlos Ghosn, in 2018, and despite Renault’s plans to leverage the U.S. market as a key revenue driver for its Alpine sports-car brand. As a way of creating value, Renault will transfer 28.4 percent of its Nissan shares to a French trust and instruct it to sell the stock at the most advantageous time for Renault.

In India, Latin America, and Europe, the restructuring of the alliance includes joint-business projects. In Mexico, Nissan will produce a new model for Renault, making it the first Renault vehicle produced there in 20 years. Renault CEO, Luca de Meo, said there are no imminent plans to reenter the US market.

Buying in to Ampere will also benefit Nissan in Europe and in its electric focus. Nissan CEO Makoto Uchida said that the investment opportunity in Ampere “complements and strengthens Nissan’s ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.”

Jean-Dominique Senard, Chairman of the alliance, didn’t hold back when sending a message to the public. “The agreements that have been signed today allow us to step into the next chapter of the alliance,” he said. “They strengthen our long-standing partnership and will maximize value creation for each alliance member. This also lays the foundations for a new balanced, fair, and effective governance.”

Renault, Nissan, and Mitsubishi have historically relied on each other for services, from technology to training. Through this reworking of the alliance, they are now able to build a stronger, more competitive company. As the EV market continues to evolve, Renault and Nissan are positioning themselves at the head of the pack

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings