Hold onto your hats, folks! Nissan’s taking a major leap in the electric vehicle arena. They’re about to pump a staggering $663 million into Renault’s shiny new electric vehicle branch. Boy, this news has been a long time coming, with more twists and turns than a roller coaster. After months of hushed talks and a few disagreements, the car giants finally hammered out the details of their restructured partnership.
Now, that’s not to say it was smooth sailing. Quite the contrary. Apparently, Nissan had been sweating over safeguarding its intellectual property in future joint ventures. No surprises there, right? With this deal, though, Nissan can breathe a sigh of relief and focus on another matter that’s got them in a tight spot: their ominous future in China, which is the world’s largest car playground.
Nissan’s CEO, Makoto Uchida, couldn’t hold back his excitement. He enthused that this massive investment would “add muscle to Nissan’s electric push in Europe”. Quite a bold move, don’t you think?
In a massive show of faith, Nissan is set to pump a whopping 600 million euros (or $663 million) into Ampere, Renault’s electric vehicle offshoot. In return, Renault’s gonna take a step back and reduce its stake in Nissan to 15% from a lofty 43%. This shifts the dynamics, folks, making things pretty much a level playing field.
What about Ampere, you ask? Well, Nissan’s not just throwing cash at them. They’re securing a seat at the table – a place on Ampere’s board. When asked about the board’s size, a Renault spokesperson played it coy, hinting that it’s still up in the air.
You know what else is interesting? Ampere could be worth a cool 10 billion euros. While Nissan had earlier announced a cap of 15% on its investment in Ampere, the exact figure remains shrouded in mystery. But wait, there’s more. Tech heavyweight Qualcomm is also eyeing an investment in Ampere, and Mitsubishi Motors, a junior partner to Nissan and Renault, is keen on deciding its potential investment ahead of Ampere’s upcoming IPO, slated for the first half of 2024.
There are still a few hoops to jump through, though. The revamp needs a green light from regulators, and we should hear the final word by the end of 2023. So, here’s to a greener future with more electric vehicles on the road! Keep your seat belts fastened; it’s gonna be a wild ride!
($1 = 0.9053 euros)