Nissan and Mitsubishi to invest €800m in Renault’s EV unit Ampere ahead of IPO

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Makoto Uchida, President and CEO of Nissan, speaks during a press conference by Renault Group, Nissan Motor Co., Ltd and Mitsubishi Corporation to present the Alliance update in Boulogne-Billancourt, near Paris, France, December 6, 2023. REUTERS/Stephanie Lecocq

Nissan and Mitsubishi have announced their investment of up to €800 million (£685 million) in Renault’s vehicle (EV) unit, Ampere. This significant investment comes ahead of the anticipated Ampere public offering (IPO) scheduled for the first half of 2024 pending favourable market conditions.

Ampere, Renault’s dedicated arm for EVs and software, has set revenue goals of €10 billion by 2025 and project growth to €25 billion by 2031. Nissan and Mitsubishi are set to play pivotal roles in this venture, aligning their strategies with the evolving alliance between these three automakers under a regional cooperation approach.

Makoto Uchida, Nissans Chief Executive stressed the importance of leveraging Ampere’s software and connectivity innovations beyond the market. He acknowledged that developing vehicles worldwide in isolation presents challenges.

The alliance recently underwent restructuring in July to focus on projects and respond swiftly to diverse automotive markets. This investment in Ampere aligns with industry trends where investors increasingly urge car manufacturers to separate their EV businesses from combustion engine segments.

Despite the outlook on the Ampere IPO some analysts like Jefferies have expressed concerns. Jefferies believes that due to the challenges faced by electric vehicle manufacturers in years, a cautious valuation of €5 to €7 billion is appropriate. They also caution against dilution of existing shareholders from value drivers.

Luca de Meo, Renaults CEO emphasized the cost saving advantages of Ampere. He mentioned a 50% reduction in costs for the Nissan Micra through their collaboration. The fact that key players are investing further confirms how the automotive industry is adapting to the shift towards electric mobility.

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