According to the Japanese newspaper Yomiuri Shimbun, Nissan Motor is considering making an investment of around $725 million in Renault’s new electric vehicle unit. This potential investment could potentially aid in resolving the ongoing discussions regarding the restructuring of their automaking alliance. It is worth mentioning that the amount being considered falls below Nissans previously established maximum threshold and it comes after both companies have agreed on terms to revamp their partnership.
It has been reported by the Yomiuri Shimbun, a Japanese newspaper, that Nissan Motor is contemplating an investment of approximately 100 billion yen ($725 million) in Renault’s newly formed electric vehicle unit.
According to Yomiuri, Nissan reached an agreement with Renault on the terms of a contract to revamp their partnership and settled on the investment amount for the electric vehicle unit named Ampere.
The anticipated enterprise value of Ampere is expected to range between 8 and 10 billion euros, with Nissan’s investment ratio estimated to be less than 10% of this sum. It is worth noting that this falls short of the 15% maximum investment threshold set by Nissan earlier in February.
The newspaper cites insider sources stating that a Nissan director will be integrated into the new company. However, certain constraints are expected to be imposed on the utilization of intellectual property originating from Nissan. The specifics of these restrictions remain shrouded in uncertainty.
In January, after long negotiations, the two automakers finally reached an agreement to overhaul their longstanding alliance, which dates back two decades.
The new arrangement aims to equalize their stakes, with Renault reducing its share in Nissan from approximately 43% to 15%. This alliance, established in 1999 and subsequently expanded to include Mitsubishi Motors as a junior member, has been a cornerstone of their respective operations.
