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Nissan Plans to Invest Nearly 600 Million Euro in Renault EV Units – News18

Nissan Plans to Invest Nearly 600 Million Euro in Renault EV Units – News18

Published By: Paras Yadav

Last Updated: July 27, 2023, 08:00 IST

Nissan and Renault on Wednesday finalised the terms of their revamped alliance, with the Japanese automaker committing to invest up to 600 million euros ($663 million) in Renault’s electric vehicle unit Ampere.

Jean-Dominique Senard, Chairman of The Alliance, said: “The agreements that have been signed today allow us to step into the next chapter of the Alliance. 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.”

Makoto Uchida, President and CEO, Nissan Motor Co. Ltd., said: “With the finalization of the definitive agreements, we have entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovations. This will create additional value through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy. 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.”

Nissan and Renault have formally redefined their French-Japanese auto alliance into a more equal one in cross-shareholdings, both sides said Wednesday. The disparity between the holdings has long been a cause of friction in the alliance, set up in 1999. At the start, Nissan, based in the Japanese port city of Yokohama, had been on the verge of bankruptcy.

Under the latest terms, which still need regulatory approval expected by the end of the year, Nissan Motor Co will invest 600 million euros ($663 million) in Ampere, Renault’s electric vehicle and software entity in Europe. Renault Group and Nissan will retain cross-shareholdings of 15% in each other, and Renault will transfer 28.4% of its Nissan shares into a French trust, so that voting rights of both sides will be capped at 15% of the total, they said in a statement.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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