Nissan to cancel investment in Renault EV company
Japan's Nissan Motor Co. said Monday it has decided to cancel its plan to invest up to 600 million euros in an electric vehicle company of France's Renault SA, its capital alliance partner.
Nissan and Renault also agreed to review their capital agreement signed in July 2023, granting them the right to reduce each other's shareholding to 10 % from 15 %.
While canceling the investment in the EV company, called Ampere, Nissan will entrust the production of EVs based on a small car of Renault to the Renault group.
Renault holds a stake of about 35 % in Nissan, including a portion entrusted to a trust company, while Nissan owns a stake of 15 % in the French company.
The review is aimed at giving each other more flexibility and is not intended to help Nissan raise funds through the sale of Renault shares, according to the Japanese company.
Meanwhile, Renault will acquire in 2025 the 51 % stake it does not yet own in an Indian joint venture with Nissan, in order to make it a wholly owned subsidiary and expand its business in the Indian market.
The Indian company will continue building Nissan SUV models after the transaction.
[Copyright The Jiji Press, Ltd.]
Photo by Reuters
