Nissan To Invest Up To 600 Million Euros In New Renault EV Unit

Renault Group and Nissan Motor Co., Ltd. have reached the final stages of their collaboration, as they formally enter into the definitive agreements outlined in the binding framework agreement executed on February 6, 2023. This milestone marks a significant step forward in strengthening their longstanding partnership and maximising value creation for each Alliance member. The transactions set out in these agreements are subject to a limited number of conditions precedent, including regulatory approvals, with completion expected in the fourth quarter of 2023.

Jean-Dominique Senard, Chairman of The Alliance, said, "They strengthen our long-standing partnership and will maximize value creation for each Alliance member. This also lays the foundations for a new balanced, fair, and effective governance.”

Makoto Uchida, President, and CEO of Nissan Motor Co. Ltd., said, "With the finalization of the definitive agreements, we have entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovation. This will create additional value through initiatives aligned to Nissan's Ambition 2030 and electrification strategy.”

The agreements will focus on three key areas to extend the Alliance collaboration:

1. High-Value-Creation Operational Projects: Renault Group and Nissan are exploring new key projects in India, Latin America, and Europe, aiming to deliver win-win, large-scale, and actionable benefits. The renewed commitment to Indian operations has already been announced, with both automakers committing to new investments and vehicles.

2. Enhanced Strategic Agility: The partners have agreed to further explore their existing strategies in electrification and low-emission technologies, investing and collaborating in respective member-company projects that will provide incremental value to each individual business. Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group's new EV and software entity in Europe, investing up to Euro 600 million and securing a board seat.

3. Rebalanced Cross-Shareholdings and Reinforced Alliance Governance: The definitive agreements formalize the rebalancing of the Renault Group-Nissan cross-shareholdings and strengthen the governance of the Alliance. Both companies will retain cross-shareholdings of 15 per cent with lock-up and standstill obligations. Renault will transfer 28.4 per cent of its Nissan shares into a French trust, allowing Nissan to exercise its voting rights attached to its shareholding in Renault Group, capped at 15 per cent of the exercisable voting rights. Renault Group will have full flexibility to sell the Nissan shares held in the trust, within a coordinated and orderly process with Nissan.

Luca de Meo, CEO of Renault Group, said, "These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for Renault, Nissan, Mitsubishi, and stakeholders.”

The formalisation of these definitive agreements signifies a renewed commitment to joint collaboration, innovation, and electrification, positioning Renault and Nissan as frontrunners in the race for electric vehicles and software solutions in Europe and beyond. As the automotive industry continues to evolve rapidly, the strengthened Alliance sets the stage for exciting advancements, cost efficiencies, and regulatory compliance across the globe.