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NewsNissan Invests $663 Million in Renault's Ampere

Nissan Invests $663 Million in Renault’s Ampere

Nissan’s significant investment in Ampere, Renault’s EV spinoff, solidifies their partnership and drives their electric push in Europe.

 

  • Nissan invests $663 million in Renault’s electric vehicle spinoff Ampere, becoming a strategic investor with a board seat.

  • The deal finalizes a restructured alliance between Renault and Nissan after 10 months of negotiations.

  • The partnership aims to strengthen collaboration and create value while enhancing Nissan’s electric push in Europe.


 

Nissan Motor Co. has reached a finalized agreement to invest up to 600 million euros ($663 million US dollars) in Ampere, the electric vehicle spinoff company of Renault, as part of the restructuring of their longstanding alliance. The announcement of the deal marks a notable milestone after 10 months of negotiations, responding to changes caused by the 2018 arrest and removal of the former alliance Chairman, Carlos Ghosn.

New Nissan Logo | Photo: Nissan

The recently finalized agreement positions Nissan as a strategic investor in Ampere, and the company will gain a seat on Ampere’s board. This development sets the stage for the completion of definitive agreements by the end of 2023, solidifying their collaboration and focusing on creating shared value among alliance members. The new partnership structure aims to establish a balanced and effective governance framework.

2019-renault-zoe
Renault Zoe | Photo: Renault

As a significant aspect of this agreement, Renault and Nissan will revise their cross-shareholdings, with each company now holding a 15 percent stake in the other. Renault will decrease its share of Nissan from the controlling 43 percent, while Nissan will retain its 15 percent ownership of the French automaker. A French trust will take on 28.4 percent of Renault’s Nissan shares, voting neutrally in Nissan’s affairs. Simultaneously, Nissan’s Renault holding will shift from a non-voting stake to one with voting rights, addressing concerns about any imbalanced power dynamics. This arrangement will allow both companies to vote independently within their 15 percent share rights.

Nissan’s investment in Ampere will have positive implications for the company’s operations in Europe and their electrification initiatives. CEO Makoto Uchida emphasized that the investment complements Nissan’s ongoing electric push in Europe and will enable numerous synergies, including cost efficiencies, regulatory compliance, and an expanded range of electric vehicle products and powertrains.

Beyond the investment in Ampere, the strategic alliance between Renault and Nissan encompasses multiple joint-business projects, with a focus on India, Latin America, and Europe. In Mexico, Nissan will take up the production of a new model for Renault, marking the first time Renault vehicles will be produced in Mexico in two decades. Additionally, while Renault Group models have not been sold in North America since the early 1990s, there are no immediate plans for Renault to re-enter this said market. However, Renault intends to leverage the U.S. and Canadian markets as a key revenue driver for its Alpine sports-car brand, aiming to introduce two models, including a midsize electric crossover, starting in 2027 or 2028.

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Renault CEO, Luca de Meo, highlighted the potential of the restructured alliance to unlock substantial value from the three-way partnership between Renault, Nissan, and Mitsubishi Motors. While Mitsubishi is part of the alliance through Nissan’s controlling 34 percent stake, Renault does not directly hold a stake in Mitsubishi. The involvement of Nissan’s former Chairman, Carlos Ghosn, played a pivotal role in Mitsubishi’s acquisition in 2016, shaping the alliance to become a major player in the global auto industry.

Renault Nissan Mitsubishi Alliance

Nissan’s investment in Ampere, combined with the repositioning of the alliance, signifies a strong commitment from both Nissan and Renault to drive electric mobility and strengthen their position in the rapidly evolving electric vehicle market.

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