By River Davis

 

TOKYO--Nissan Motor said Wednesday that it will invest up to 600 million euros, equivalent to about $663 million, in the electric-vehicle unit to be carved out of its longtime alliance partner Renault.

The investment is part of broader alliance-restructuring plans the companies jointly announced in February. With its investment in Renault's EV spinoff, called Ampere, Nissan said it will secure a seat on the new company's board.

The agreement previously outlined by the automakers also involves Renault reducing its stake in Nissan. The companies announced plans earlier this year for Renault to reduce its 43% stake in Nissan to 15%, to match the stake the Japanese automaker holds in its partner.

Nissan and Renault on Wednesday said they have entered into "definitive agreements" based on the framework announced in February. The completion of these plans is expected to occur in the fourth quarter, they said.

Nissan Chief Executive Makoto Uchida said he is witnessing a pickup in EV sales momentum. He said the automaker is looking at how best to remake its strategy in major markets. "Investing in Ampere will reinforce and accelerate Nissan's EV strategy in Europe," he said.

 

Write to River Davis at river.davis@wsj.com

 

(END) Dow Jones Newswires

July 26, 2023 01:14 ET (05:14 GMT)

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