TOKYO: Nissan Motor is poised to make a substantial investment of approximately 100 billion yen ($725 million) in Renault’s recently established electric vehicle (EV) unit.
This development holds the potential to surmount a significant obstacle in the protracted negotiations aimed at restructuring their automotive alliance, according to a report by the Yomiuri Shimbun, which surfaced on Friday.
As per the Yomiuri, the Japanese automaker concluded the terms of a contract to revamp its partnership with Renault on Thursday. Furthermore, an agreement was reached with the French counterpart regarding the investment amount in the EV unit known as Ampere, according to BUSINESS RECORDER.
However, a spokesperson from Nissan clarified that discussions concerning the contract, including the precise investment amount, have not reached a finalization stage yet. “Discussions are ongoing between the two companies, but no definitive agreement has been reached thus far,” stated the spokesperson.
Based on the information provided by individuals familiar with the matter, Yomiuri noted that Nissan and Renault anticipate Ampere’s enterprise value to range between 8 to 10 billion euros. Additionally, Nissan’s investment ratio is projected to fall below 10% of this value, falling short of the 15% maximum limit set by Nissan in February.
According to Yomiuri, a Nissan director will join the ranks of the newly established company. Furthermore, certain restrictions will be implemented on the management of intellectual property originating from the Japanese automaker.
Nissan, Renault reach at agreement
After several months of arduous negotiations, Nissan and Renault reached an agreement in January to overhaul their long-standing alliance, which spans over two decades. This restructuring initiative involves Renault reducing its stake in Nissan from approximately 43% to 15%, thereby achieving a more balanced footing between the two companies. The alliance, initially formed in 1999, has since expanded to include Mitsubishi Motors as a junior member.
