According to Yomiuri, Nissan will invest about $725 million in Renault’s EV unit

Nissan Motor may spend about $725 million on Renault’s new electric vehicle division, according to the Japanese newspaper Yomiuri Shimbun. The continuing discussions over the rearrangement of their automaking partnership might be resolved with the help of this potential investment. It is important to note that the amount under consideration is less than the company’s previously defined maximum threshold and that it occurs after the two firms have reached an agreement to restructure their alliance.

Nissan will invest about $725 million in Renault’s EV unit

According to the Japanese newspaper Yomiuri Shimbun, Nissan Motor is considering investing about 100 billion yen ($725 million) in Renault’s newly established electric vehicle division. According to Yomiuri, Nissan, and Renault have agreed on the parameters of a new collaboration contract and the investment amount for the Ampere electric car division.

Nissan
Credit: Reuters

Nissan‘s investment ratio is projected to be less than 10% of Ampere’s predicted enterprise value, which is expected to range between 8 and 10 billion euros. It is important to note that this falls short of Nissan’s earlier February set maximum investment target of 15%.

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A director of the company will be merged into the new business, according to insider sources cited by the publication. The use of intellectual property created by the Japanese motor company is expected to be subject to some limitations, though. There is some confusion surrounding the details of these limits.

The two manufacturers ultimately came to an agreement to restructure their 20-year-old alliance in January following protracted negotiations. The new deal reduces Renault’s stake in Nissan from about 43% to 15% in an effort to equalise their stakes. This alliance was a pillar of each company’s activities when it was formed in 1999 and later expanded to include Mitsubishi Motors as a junior member.

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