LONDON, Feb. 7 (9bit): Japanese carmaker Nissan will buy up to 15% of Renault’s electric car unit Ampere, the pair said Monday, rebooting a long and sometimes contentious alliance that would also… Create more popular car platforms.
The agreement, which came after months of tense talks, includes a previously announced reduction of Renault’s stake in Nissan to put the two on an equal footing, and extends an initial 15-year period, a partnership that has been in place since 1999 and also includes Mitsubishi Motors, Reuters reports.
“Before, the alliance was all about synergies… and global volumes,” Ashwani Gupta, Nissan’s chief operating officer, told Reuters. “The next 15 years is about how we become the number one value creator for each other and for our shareholders.”
The automakers’ lopsided relationship, badly strained by the arrest of architect and former president Carlos Ghosn amid a financial scandal, has long been a source of contention among Nissan executives.
While Nissan was rescued by Renault two decades ago, it is the youngest automaker by sales.
“I consider what we have agreed on to be a much better setup than we have had in the last few years,” Renault CEO Luca de Meo said at a presentation of the New Look Alliance in London.
“We now have a new, clearer governance scheme, we can now operate as a normal company. From Renault’s perspective, (it’s about) regaining some strategic flexibility without necessarily breaking the links and synergies that were there.”
It is not yet clear how much Nissan has invested, or even its firm commitment to investing money in the electric vehicle unit, Renault’s flagship which is set to be listed on the market.
“We see AMP as an enabler for Nissan to participate in new business opportunities in Europe,” Nissan CEO Makoto Uchida told reporters and analysts.
No financial details were disclosed regarding the valuation of the business, with Di Meo saying the market will decide. Some sources indicated that it could reach 10 billion euros.
Mitsubishi CEO Takao Kato said the Ampere will also form part of its European electric vehicle strategy and the company will “further study” its equity participation.
Renault will reduce its stake in Nissan to 15% from about 43% by transferring 28% of its stake to a French trust.
The statement on Monday said the French automaker would have the flexibility to sell the Nissan shares owned in the fund, but it was “not obligated to sell the shares within a predetermined time period.”
De Meo said Renault would act in “good faith” and sell Nissan shares “in an orderly manner”. When you sell, Nissan will have the right to the first offer.
The companies detailed planned joint ventures in Europe, India and Latin America, and will work together on the electric vehicle, electronics and solid-state battery business.
Renault shares were down about 0.7 percent by 1225 GMT.
The process of reconfiguring the 24-year-old alliance began after talks bogged down over concerns about sharing intellectual property as Renault sought relationships with companies outside the partnership, including China’s Geely.
Renault’s board approved the deal on Sunday night, according to a source. It was also approved by Nissan’s board of directors early Monday, the source said.
The renewed alliance could enable Nissan and Renault to work together more harmoniously, CLSA analyst Christopher Richter said, but noted that Honda and GM have forged a partnership that includes joint development of low-cost electric vehicles without the need for a capital relationship.
He added that, not seeing Renault’s brand strong, it may be difficult for them to raise much money for Ampere from the market.
“That’s why I think they will push Nissan to pay so much.”