Nissan To Buy Up To 15% Stake In Renault EV Unit Under Restructured Alliance

Nissan and Renault unveiled details of their redesigned alliance on Monday, with the Japanese automaker agreeing to buy up to 15% of Renault's electric vehicle unit Ampere.

The agreement, which also includes the previously announced reduction of Renault's stake in Nissan to make the two partners more equal, aims to make the alliance more free and balanced over the next 15 years, according to Renault CEO Luca de Meo.

The lopsided relationship between the two automakers, which was strained by the arrest of its architect and former chairman, Carlos Ghosn, in 2018 amid a financial scandal, had long been a source of contention among Nissan executives. Despite the fact that Renault bailed out Nissan two decades ago, it is the smaller automaker in terms of sales.

"I consider that what we have agreed is a much better set-up than what we have had in the last past few years," de Meo told a presentation of the new-look alliance in London. "We have now a new governance scheme that is much more straightforward, we can now operate like a normal company. Seen from Renault, (it) is about regaining some strategic agility without breaking necessarily the ties and the synergies that were existing."

The size of Nissan's investment, or even a firm commitment to invest in Renault's flagship business, which is set to go public, has so far remained unknown. On Monday, no financial details were disclosed about the company's valuation, which some sources have suggested could be up to 10 billion euros. De Meo stated that the unit's value would be determined by the market.

Nissan and Mitsubishi executives said Ampere could help them expand their European operations.

Ampere will also be part of Mitsubishi's European EV strategy, according to CEO Takao Kato, and the company will "further study" its stake in the unit. Nissan and Renault had already announced that the French automaker would reduce its stake in Nissan from approximately 43% to 15% by transferring a 28% stake into a French trust.

Renault will have the option to sell the Nissan shares held in trust, but "it is under no obligation to sell the shares within a specific pre-determined period of time," according to a statement issued on Monday. De Meo said on Monday Renault will act in "good faith" and sell off its Nissan shares in "an orderly manner".