Renault SA and Nissan Motor Co. are reportedly edging closer to a deal that would see Nissan invest in Renault's electric-vehicle (EV) arm, Ampere. The agreement is seen as a crucial step towards rebalancing the troubled alliance between the two automakers.
The potential deal is expected to be discussed during an upcoming alliance operating board meeting in Yokohama, which will be attended by Renault Chairman Jean-Dominique Senard. The talks have gained momentum following recent changes in Nissan's top management, which have helped to remove obstacles in the negotiations.
Although the investment into Ampere is not officially on the meeting's agenda, the discussions are likely to solidify plans for Nissan to acquire a stake of up to 15% in Renault's EV division. Representatives from both companies have acknowledged that talks to finalize the agreement are progressing.
Negotiations between Renault and Nissan had been hindered by an internal power struggle at Nissan, leading to the departure of Chief Operating Officer Ashwani Gupta. However, with this obstacle now cleared, the alliance partners are eager to reach a final agreement as soon as possible. The London framework agreement, first outlined in February, aims to restructure the cross-capital ties and collaboration on future projects within the three-way alliance, which also includes Mitsubishi Motors Corp.
Both Renault and Nissan are under pressure to solidify the landmark deal as they face increasing competition from Tesla Inc. and Chinese electric vehicle manufacturers. The completion of this agreement would provide a much-needed boost to both companies' EV strategies.
Renault has set its sights on an initial public offering of Ampere, potentially as early as the fourth quarter. It is believed that lawyers have been deployed to the respective home countries of Renault and Nissan to make progress on the necessary legal accords.
The close cooperation between Renault CEO Luca de Meo and Nissan CEO Makoto Uchida has been instrumental in advancing the deal. A series of joint projects between the two companies has already been reactivated and is progressing well, as confirmed by de Meo earlier this week.
All parties involved are hopeful that the recent progress made in negotiations will soon lead to a final agreement. With the crucial governance hurdle cleared, Renault and Nissan can now focus on bringing their alliance to a new level and strengthening their position in the increasingly competitive EV market.