It was stated that while the investment negotiations between Nissan and Renault, which had been going on for months, were concluded, the company decided to invest 600 million euros in the French giant’s Ampere brand. On the other hand, Renault has agreed to transfer some of its shares in Nissan to a French third party.
Nissan Motor has finalized its plans to invest in Renault SA’s electric vehicle startup Ampere and has concluded months of negotiations to rebalance the troubled automotive alliance between the two companies.
The companies announced in a statement that Nissan will invest up to 600 million euros ($663 million) in the venture. Separately, the two companies formalized an agreement for Renault to reduce its stake in Nissan to 15 percent and transfer the remainder of its existing 43 percent stake to a French third party.
Renault CEO Luca de Meo said: “These agreements provide us with a solid foundation to reactivate business operations worldwide in critical markets with the potential to create hundreds of millions of dollars in value. They give us the strategic agility we need more than ever in today’s rapidly evolving environment.”
The Ampere deal is a vote of confidence for De Meo’s strategy. The head of the French giant is trying to fix the Franco-Japanese alliance, which also includes the smaller partner Mitsubishi Motors, while renewing the company’s corporate structure to better cope with the transition to electric vehicles and increase profits. The deal is expected to conclude in the fourth quarter.
“It’s difficult for us to do business alone in Europe, so investing in Ampere has given us the opportunity to connect with other companies,” said Nissan CEO Makoto Uchida.
Mitsubishi also announced this week that it will decide to invest in Ampere by the end of 2023 at the earliest.
The two automotive giants reached an agreement in principle in February to rebalance the partnership, but finalizing the deal required weeks of negotiations due to disagreements over intellectual property rights and Ampere investment.