Nissan Buys 15 Shares Of Renault Electric Vehicle Unit

JAKARTA - After going through a long process of conversation, Japanese automaker Nissan will reduce its investment by 15% for Renault's electric vehicle unit, Ampere.

"Nissan's intention is to invest up to 15% in Ampere. The EV & Software Renault Group entity in Europe, with the aim of becoming a strategic investor," the company said in a statement ahead of its presentation in London, England.

According to Reuters, Chief Executive Renault Luca de Meo said that the massive overhaul of the automaker alliance, which was two decades old last month, aims to make the alliance more free and more balanced over the next 15 years.

Renault Group and Nissan, the founding-members of the Alliance, have agreed to rebalancing their cross-shareholding and governance terms to ensure effectiveness and maximize value creation. pic.twitter.com/IwH9D4VJXS

— Renault Group (@renaultgroup) February 6, 2023

In the deal, the French automaker will reduce its stake in its Japanese partner from the previous 43% to 15%.

Renault will then transfer the remaining 28.4% of Nissan's shares to France's trust, making two equal partners in the alliance.

"The next 15 years are about how we become creators of number one values for each other and our shareholders," said Nissan Chief Operating Officer Ashwani Gupta.

The size of Nissan's investment amount or even a strong commitment to putting money into Renault's EV unit, is still unclear. However, Nissan thought that Ampere could be the driver of Nisaan's business in Europe.

"We consider Ampere as an impetus for Nissan to participate in new business opportunities in Europe," said Nissan chief executive Makoto Uchida.

No financial details were disclosed regarding the business assessment, with de Meo saying the market would decide. Several Reuters sources indicated it could be worth up to 10 billion euros.