Nissan has confirmed it will strategically invest in Renault‘s electric vehicle and software division, Ampere.
Renault and Nissan announced earlier this year they would adjust the current conditions of their Alliance, which date back to 2019.
Nissan will invest €600 million (AU$988 million) in Ampere and secure a board seat. Renault will continue to hold a majority share in Ampere.
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The Japanese brand says the investment “aligns with Nissan’s electrification strategy, creating multiple potential benefits and synergies that complement Nissan’s own goals and initiatives in Europe and other potential markets”.
Renault Group has previously said Ampere will be profitable within two years.
CEO of Renault Group Luca de Meo will head Ampere while continuing to maintain his responsibilities with the French automaker.
Ampere will be supported by “one of the most integrated EV value chains in the industry, a pioneering approach to Software Defined Vehicle, and state-of-the-art engineering and manufacturing capabilities,” said De Meo.
Ampere has proposed an initial lineup consisting of six vehicles including the Renault 5, Renault 4, Megane E-Tech Electric, Scénic E-Tech Electric as well as two unannounced vehicles.
The company projects its factory in northern France will be capable of producing 480,000 EVs a year.
Renault will lean on its Ampere arm to reach its goals of being an all-electric brand in Europe by 2030.
The Renault Group aims to be carbon-neutral in Europe by 2040 and worldwide by 2050.
Nissan’s funding into the company comes after Renault agreed earlier this year to reduce its stake in Nissan to 15 per cent. The remaining 28.4 per cent of its shares will go into a French trust.
Renault Group will continue to benefit from the “economic rights” from these shares until the shares are sold. The trust will gradually sell off its stake in Nissan, as instructed by Renault in consultation with the Japanese automaker.
In the new Renault/Nissan conditions the Japanese company now has voting rights in Renault shareholder meetings.
Both companies have agreed to