Nissan is all set to invest $663 million in Renault’s new electric vehicle unit dubbed Ampere. Earlier there were rumors spreading around this move from Nissan to spearhead a green revolution in the market. The new investment will mark a significant step forward in the somewhat dicey relationship between Nissan and Renault in the past couple of years.
Renault’s Ownership At Nissan
Under the new agreement between Renault and Nissan, Renault is set to reduce its stake in Nissan from approximately 43 percent to 15 percent, resulting in a balanced partnership between the two brands. As part of its strategic investment, Nissan will also secure a board seat in the newly formed company, Ampere. Nissan’s CEO, Makoto Uchida, stated that this investment will complement and reinforce Nissan’s ongoing efforts to promote electric mobility in Europe.
Industry sources have indicated that Ampere’s potential valuation could reach 10 billion euros. While Nissan had previously announced its intent to invest a maximum of 15 percent in Ampere, the exact size of its stake had not been clarified until now.
The Electric Vision
The new EV unit that Nissan is investing in aims to drive this transition by developing cutting-edge electric vehicles that are not only eco-friendly but also affordable and accessible to a broader audience. With the global community pushing for the Paris Agreement’s climate change goals, car manufacturers have been challenged to accelerate their transition to emission-free vehicles
The $663 million investment will be utilized to fuel research and development efforts, enabling Renault to innovate and produce advanced EV technologies. This infusion of funds will undoubtedly bolster Renault’s capabilities to compete with other EV industry giants and pave the way for a cleaner and greener future.
The collaboration will also foster knowledge-sharing between the two automotive giants, unlocking new avenues for innovation and propelling EV technology to unprecedented heights. The result? A lineup of EVs that not only rival traditional internal combustion engines in performance but also excel in environmental sustainability.
Renault’s EV Aspirations
In a statement, Renault CEO Luca de Meo expressed his confidence in the agreements, highlighting their potential to revitalize business operations worldwide in key markets and create significant value, potentially amounting to hundreds of millions. These deals grant Renault the strategic flexibility necessary to navigate the rapidly evolving business landscape.
As part of Renault’s efforts to cope with the challenging shift to electric vehicles amid a possible European recession, the company has decided to separate its EV business from its traditional combustion-engine operations. With the additional financial support from Nissan, Renault is poised to introduce more electric models to the market, bolster its charging infrastructure, and elevate the overall electric driving experience for consumers.
Other Investors For Renault
- Mitsubishi has also announced that they will arrive at a decision by the end of 2023 on their investment for the Ampere facility.
- US chip giant Qualcomm has already said it will invest in Ampere.
- Renault & Geely earlier announced that they will be developing combustion and hybrid engines together to keep internal combustion-powered cars coming.
Both brands are gearing up to take on Tesla and several Chinese EV makers with the new agreement. Nissan‘s substantial investment in Renault’s EV unit is poised to send shockwaves through the automotive industry. As two of the most influential players in the market, their alliance could potentially disrupt the status quo and accelerate the global adoption of electric vehicles.
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