Leading vehicle sales and technological advancements in Nissan’s EV segment have led to a restructured alliance between Nissan and Renault.
Nissan Motors has committed to buying a 15% stake in Renault’s new electric vehicles unit Ampere, as a part of their redesigned alliance. Junior alliance partner Mitsubishi Motors Corp. will also consider investing in the new company.
“Nissan’s intention is to invest up to 15% in Ampere, Renault Group’s EV & software entity in Europe, with the aim to become a strategic investor,” the statement said ahead of a presentation in London.
Under the agreement, the French company will reduce its 43.4% stake in the Japanese automaker to 15%, while Nissan will maintain its current stake in its alliance partner.
Chipmaker Qualcomm is also a strategic investor in Ampere.
The agreement received backing from Renault’s board on Sunday.
Renault became the top shareholder of Nissan in 1999 when the latter was on the cusp of bankruptcy. Carlos Ghosn was sent from Renault to lead the overhaul. Mitsubishi Motors joined the alliance after Nissan acquired a 34% stake in it in 2016.
As Nissan recovered from the crisis, its officials have come to see the capital alliance as unequal, given Nissan has more significant vehicle sales than its French partner and a technological lead in the electric vehicle segment.
Renault will transfer 28.4% of Nissan shares into a French trust, making the two more equal partners in the alliance. Renault issued a statement saying that it would have complete flexibility to sell the Nissan shares held in the trust. Still, it had no obligation to sell the shares within a specific predetermined period of time.
It further clarified that when it did sell its shares, Nissan would benefit from a right of first offer, to its or the benefit of a designated third party.
