Renault Group and Nissan Motor on Wednesday announced inking of definitive agreements to formalise the framework deal executed in February this year, to create high-value operational projects in India, Latin America and Europe.
As part of the initiative, the partners are considering new projects in India, Latin America and Europe that aim to deliver win-win, large-scale and actionable benefits, the companies said.
Among these, Renault Group and Nissan have already announced their renewed commitment to Indian operations through new investments and vehicles.
In February this year, the two companies announced an investment of USD 600 million (Rs 4,920 crore) in India to bring six new products, including two small electric cars, and an upgrade of their Chennai plant.
The new vehicles will also include four SUVs with conventional engines, the first of which will hit the market by 2025. Of the six new vehicles, Nissan and Renault will have three each.
In the second area of enhanced cooperation, the partners have agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.
As part of this cooperation, Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group’s new electric vehicle (EV) and software entity in Europe.
Accordingly, Nissan has committed to invest in Ampere up to Euro 600 million. The definitive agreements also formalise the rebalancing of the Renault Group-Nissan cross-shareholdings and the reinforcement of the governance of the alliance.
Renault Group and Nissan have entered a new arrangement that will replace the current agreements.
“The agreements signed today allow us to step into the next chapter of the alliance. They strengthen our long-standing partnership and will maximise value creation for each alliance member. This also lays the foundations for a new balanced, fair, and effective governance,” Chairman of the alliance Jean-Dominique Senard said.
Nissan Motors President and Chief Executive Officer (CEO) Makoto Uchida said the finalisation of the definitive agreements will create additional value for the partners.
Renault Group CEO Luca de Meo said the agreements provide the alliance with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for Renault, Nissan, Mitsubishi and stakeholders.
