Nissan confirms plans to invest up to $663 million in its alliance partner Renault’s Ampere electric vehicle and software division.
The investment “complements and strengthens Nissan’s ongoing electric push in Europe,” says Nissan CEO Makoto Uschide, adding it will deliver “numerous synergies, including cost efficiencies, regulatory compliance and a broader range of electric vehicle products and powertrains.”
The decision by Nissan to invest in Renault’s Ampere division comes after high-level discussions calling for a more balanced cross-shareholding between the two automakers.
The Renault Group and Nissan will retain a 15% cross-shareholding in each other, with the Renault Group agreeing to transfer 28.4% of its Nissan shares worth $4.2 billion at Nissan’s current share price into a French trust, to keep voting rights of each company at the same level, the two announce in a joint statement.
Uchida says the agreement “will create additional value through initiatives,” while Renault Group CEO Luca de Meo says it gives the French automaker “the strategic agility that we need more than ever in today’s rapidly evolving environment.”
As part of the investment agreement, the Renault Group is free to sell off the shares placed in the trust fund – a move that could be used to free up cash reserves for new vehicle development and drivetrain electrification measures.