Nissan ready to invest up to $750 million in Renault’s EV business

According to a preliminary report, Nissan would be willing to invest between 500 and 750 million dollars in the electric car division of its partner Renault, a move that would lead to a complete reorganization of the Renault-Nissan-Mitsubishi Alliance. Renault currently owns 43.4% of Nissan, which in turn controls 15% of Renault (without voting rights) and 34% of Mitsubishi.

In exchange for this significant investment, Renault would reduce its stake in Nissan to 15%. The Japanese firm considers that supporting the transformation of the French manufacturer is a way of paying it back for rescuing it from bankruptcy in 1999. Thus, Nissan could acquire up to 15% of Renault’s new electric car and software division.

Once the agreement enters into force, Renault’s voting rights will be limited. All these changes will require a new agreement to manage the Alliance, which is currently one of the largest automotive groups in the world. However, it does not seem that the role of Mitsubishi will change.

On November 8, Renault is scheduled to make official its plans to separate its business into two independent divisions: one for electric cars (Ampère), and another for thermal and hybrid cars (Horse). The Chinese group Geely and the oil company Aramco would have shown interest in acquiring 40% and 20% of the latter, respectively.

Renault will split its business into two separate entities

Ampère (which will also include Mobilize, the Renault Group’s mobility company) will be listed on the stock market, which, together with the partial sale of Horse, will allow the diamond firm to finance the development of its future 100% electric range. At the moment it is only known that there are “numerous investors” interested in both divisions, although Renault will remain a reference shareholder in both cases.

Mobilize Fast Charge
Mobilize Fast Charge

The French brand plans to stop selling thermal and hybrid vehicles in Europe in 2030. Already in 2024, it will launch a complete offensive of electric models, including the R5 utility vehicle, the 4L B-SUV, the C-SUV Scénic E-TECH, an Alpine brand hot hatch, the second generation of the Dacia Spring and a van derived from the 4L (Express E-TECH?).

Alpine itself will go 100% electric by 2026, at which point it will launch the replacement for the A110 sports car. A year earlier it will have presented a crossover based on the CMF-EV platform already seen in the Nissan Ariya and Renault Megane E-TECH. Dacia for its part will try to stretch its models with an internal combustion engine until 2035.

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