Nissan to invest in Renault’s electric division and Renault to have less visibility in Japan
The “soap opera” between Nissan and Renault seems to have come to an end, after several months of negotiations in which both brands have restructured their position within the Alliance, a cooperation between three brands (Renault, Nissan and Mitsubishi).
The origin and purpose of the Alliance from the beginning has always been the same, i.e. to optimise resources and efforts among the three brands in order to be more competitive with their products (vehicles) and also to have a presence in markets that would otherwise be more difficult.
In the end, the Alliance is not in danger, but there will be new changes that will affect the future of the partnership, which aims to make the three brands much more competitive in a market that is changing very fast.
One of the agreements is that Nissan will invest in Renault’s new electric car and software division, Ampère. By investing in this division, both brands will be able to share developments and resources for their future electric cars, as well as new technology in the form of software.
In addition, to balance power within the Alliance, which is currently dominated by Renault, the French carmaker will transfer up to 28.4% of Nissan’s shares to a trust. With this possible sale of Renault shares, both Renault and Nissan will keep the same percentage of shares in both companies, i.e. 15% of Nissan will belong to Renault and 15% of Renault will continue to belong to Nissan.
With this new situation within the Alliance, it is possible that Mitsubishi will also take a similar step by developing a joint electric vehicle platform that can be used by all three brands to develop future electric cars.
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