Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Nissan seals Renault deal, now faces hard yards in China

Nissan seals Renault deal, now faces hard yards in China

By Daniel Leussink and Gilles Guillaume

TOKYO/PARIS (Reuters) -Nissan will invest up to $663 million in Renault’s new electric vehicle unit, the automakers said on Wednesday, as they finalised terms of their restructured partnership after months of negotiation clouded by tension.

Sealing the deal is likely to be seen as a positive. Talks between the two had dragged on months longer than expected, Reuters has reported, due in part to Nissan’s concern about protecting its intellectual property in future collaborations.

The agreement now frees up both companies to focus on the more pressing problem of navigating the fast-changing industry landscape. For Nissan, that means contending with an increasingly grim outlook for foreign automakers in China, the world’s biggest car market.

The Japanese automaker said China remained a challenge after reporting that it nearly doubled first-quarter profit, and lifted its full-year outlook, helped by a weaker yen, and better sales in Japan and North America.

CEO Makoto Uchida told a briefing he expected the earnings recovery in the world’s second-largest economy to take some time, adding Nissan would give more details on a new line-up for the Chinese market by autumn.

Unfortunately, our sales outlook is now falling far below our production capacity,” he said of China, adding that he had he recently visited the country and held talks with joint venture partner Dongfeng Motor Group.

Chinese auto brands are on track to account for just over 50% of the cars sold in their home market this year thanks to a growing dominance in electric vehicles, consultancy AlixPartners said this month.


Nissan said it would invest up to 600 million euros ($663 million) in Renault’s electric vehicle unit, Ampere. Renault, meanwhile, will lower its stake in Nissan to 15% from around 43%, putting their relationship on equal footing.

The investment in Ampere is consistent with Nissan being a strategic investor and securing a board seat on the new company, Nissan said.

Questioned on how many members the board will have, a Renault spokesperson replied it had not yet been fully decided.

Sources have said Ampere could be valued at up to 10 billion euros. Nissan had flagged in February that it would invest a maximum 15% in Ampere, but the exact size of its stake remained unclear.

U.S. chip giant Qualcomm has already said it will invest in Ampere, and Nissan and Renault’s junior partner, Mitsubishi Motors, has said it wants to decide about any potential investment before the unit’s initial public offering, which could happen during the first half of 2024.

The companies said the overhaul was subject to regulatory approvals and completion was expected in the fourth quarter of 2023.

($1 = 0.9053 euros)

(Reporting by Gilles Guillame in PARIS and Daniel Leussink in TOKYO; Editing by David Dolan and Miral Fahmy)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts