How the tides have turned: Nissan to invest in Renault's upcoming EV brand

Japanese carmaker Nissan is planning to invest more in electric vehicles (EV) in partnership with Renault.

The companies said in January 2023 press statement that Nissan will put money into the French carmaker’s upcoming EV brand, tentatively called Ampere. 

The two companies, along with Japanese carmaker Mitsubishi, have been in an alliance since 1999.

The EV spinoff will focus mainly on developing and selling battery EVs. Nissan and Mitsubishi will have access to the technology for their European lineups, although Nissan will still develop EVs in-house.

Semiconductor company Qualcomm is also expected to take a stake in Ampere.

Equal footing

The companies also announced that Renault will reduce its share in Nissan, which the French carmaker saved from bankruptcy over two decades ago.

Renault currently owns 43 percent of Nissan. This will go down to 15 percent, which is the same as the stake that Nissan has in Renault. 

Renault and Nissan said the move has yet to be approved by their respective company boards. 

"The ambition is to strengthen the ties of the Alliance and maximize value creation for all stakeholders," the companies said.

In addition, the Renault shares held by Nissan have no voting rights because of French legal restrictions, something that has long frustrated the Japanese automaker.

Less tension after Ghosn mess

The rebalancing is also expected to reduce tensions in the alliance following the arrest of former chair Carlos Ghosn on November 2018 for allegedly underreporting his salary and grossly misusing company assets.

Nissan and Mitsubishi removed Ghosn as chair of their board of directors that same month. He retired as CEO and chair of Renault on January 2019.

Following his arrest on April 2019 stemming from new charges of allegedly misappropriating Nissan funds, he fled Japanese custody on December 2019 while on bail by escaping in a musical instrument box.

He has been wanted by Interpol since January 2020.

An announcement on the alliance’s business structure changes is expected on February 2023.