Japanese carmaker Nissan will buy a stake of up to 15% in Renault’s Ampere electric vehicle (EV) unit, the pair said on Monday, in a move to restart a longstanding alliance and sometimes controversial will also create more popular automotive platforms.
The agreement, which came after months of intense negotiations, includes a reduction in renaultshares of NISSAN to place the two parties on a more equal footing, extending the original period to 15 years, a partnership that has been around since 1999 and also includes Mitsubishi engine.
“In the past, the alliance was more focused on synergy… and global volume,” Nissan CEO Ashwani Gupta told Reuters. “The next 15 years are about how we become the number one value creator for each other and for our shareholders.”
The fraught relationship between the two automakers was already deeply strained following the arrest of architect and former chairman Carlos Ghosn in 2018 amid a longstanding financial scandal. became a source of friction among Nissan executives.
Although Renault bailed out Nissan two decades ago, it is a smaller automaker by sales.
“I think what we’ve agreed to is a much better setup than what we’ve had in the last few years,” said Renault CEO Luca de Meo at the alliance presentation. New look in London.
“We now have a new governance plan that is much simpler, we can now operate as a normal company. From Renault’s point of view, (it) is about regaining some flexibility. strategy without necessarily disrupting existing relationships and synergies.”
The size of Nissan’s investment or even a firm commitment to put the money in tram Renault’s flagship business unit is about to be listed on the market, so far unclear.
“We see Ampere as an enabler for Nissan to engage in new business opportunities in Europe,” Nissan CEO Makoto Uchida told reporters and analysts.
No financial details have been disclosed regarding the valuation of the business, de Meo said that the market will decide. Some sources say it could be worth up to 10 billion EUR (nearly 88,900 rupees).
Mitsubishi CEO Takao Kato said Ampere will also be part of its European EV strategy and the company will “do more research” on joining the share.
Renault will reduce its stake in Nissan to 15% from about 43% by transferring its 28% stake into a French trust.
The French carmaker will have flexibility in selling the Nissan shares entrusted to it but is “under no obligation to sell the shares within a specified, pre-determined period of time”, the statement on Monday said. .
De Meo said Renault would act in “good faith” and sell off its Nissan stake in an “orderly manner”. When it goes on sale, Nissan will have the first preference.
The companies have detailed plans for joint projects in Europe, India and Latin America, and will work together in the electric vehicle, electronics and solid-state battery businesses.
A sweeping rework of the 24-year-old alliance is underway after negotiations dragged on over concerns about sharing intellectual property as Renault seeks to partner with companies outside its relationship with the company. cooperation, including China’s Geely.
According to a source, Renault’s board approved the deal on Sunday evening. The source said Nissan’s board also approved it early Monday.
CLSA analyst Christopher Richter said the revamped alliance could allow Nissan and Renault to work a little more harmoniously, but he noted that Honda and General Motors have built a partnership that includes jointly develop low-cost electric vehicles without any capital relationship.
He added that because the Renault brand is not considered a strong one, it may be difficult for the company to raise much money for Ampere from the market.
“That’s why I think they’re going to force Nissan to pay so much.”
© Thomson Reuters 2023
