Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Renault-Nissan to do more together in $26 billion electric bet

Stock MarketsJan 27, 2022 12:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of the Renault-Nissan-Mitsubishi alliance is seen ahead of a Renault, Nissan and Mitsubishi chiefs' joint news conference in Yokohama, Japan, March 12, 2019. REUTERS/Kim Kyung-Hoon/File Photo

By Tim Kelly and Gilles Guillaume

TOKYO/PARIS (Reuters) -Renault and Nissan (OTC:NSANY) will work more closely together to make electric cars, they said on Thursday, as they detailed a $26 billion investment plan over the next five years to stay competitive in the switch to cleaner driving.

The two-decade old alliance, which also includes Mitsubishi Motors (OTC:MMTOF), said it would increase the number of common platforms for electric vehicles (EV) to five from four.

They will build a combined EV line-up of 35 vehicles by 2030, the companies said, adding that by 2026 four fifths of their models would share common platforms, up from 60% now.

Rocked by the 2018 ouster of alliance founder and chairman Carlos Ghosn amid a financial scandal, the companies have pledged to strengthen their ties by pooling more resources.

"The alliance will hold its place among the world automotive leaders," Alliance Operating Board Chairman, Jean-Dominique Senard, said during an online presentation.

But it faces competition from bigger carmakers with deeper pockets, such as Toyota Motor (NYSE:TM), which in December pledged to spend $70 billion https://www.reuters.com/business/autos-transportation/toyota-says-have-30-battery-electric-line-up-vehicles-by-2030-2021-12-14 to electrify its fleet, as well as EV specialists such as Tesla (NASDAQ:TSLA) Inc.

Now the world's most valuable automaker, Tesla forecast on Wednesday its deliveries in 2022 would grow 50% https://www.reuters.com/business/autos-transportation/tesla-beats-revenue-estimates-record-deliveries-2022-01-26 year on year.

Asked whether the EV spending plan was enough, given it is only around half https://www.reuters.com/business/autos-transportation/volkswagen-board-provide-details-ceos-future-powers-source-2021-12-09 what Germany's Volkswagen AG (OTC:VWAGY) plans to invest in the technology, Renault (PA:RENA) Chief Financial Officer Clotilde Delbos said it was "sufficient," given the alliance's past experience in making EVs.

"We are not a second division player when we come together," Renault CEO Luca de Meo said during the presentation.

SCALE

To power the new EVs, the partners said they planned to secure 220 gigawatt (GWh) hours of battery production capacity by 2030, providing greater scale that would allow them to halve battery costs by 2026 and reduce them by 65% by 2028. They did not give details on how the capacity would be secured.

The money promised on Thursday comes from funding announced last year.

In June, Renault unveiled a five-year 10 billion euro EV strategy https://www.reuters.com/business/sustainable-business/renault-raises-targets-share-electric-vehicles-2021-06-30 with a plan to launch 10 models and to have EVs account for 90% of all models by 2030.

Nissan said in November it would spend 2 trillion yen ($17.6 billion) over five years to accelerate vehicle electrification, including on EVs and hybrid gasoline-electric cars.

Japan's No. 3 carmaker plans to launch 23 electrified vehicles by 2030, including 15 pure EVs. It has also said it wants to reduce lithium-ion battery costs by 65% within eight years and introduce potentially game-changing all solid-state batteries by March 2029.

Nissan said on Thursday it planned to replace its Micra car in Europe with a new EV using one of the common platforms.

Holding the three-way alliance together is a cross-shareholding relationship, with Renault owning 43.4% of Nissan, which in turn has a 15% non-voting stake in the French car company and a third of Mitsubishi Motors' stock.

Senard declined to comment when asked whether the partners might rebalance the relationship by changing those holdings.

A new structure has been expected by financial markets. Renault has been in the dominant position since it bailed out Nissan two decades ago, but is now smaller by sales than its Japanese partner.

"Life is long and we should never be impatient on that kind of subject," said Senard

($1 = 0.8929 euros)

Renault-Nissan to do more together in $26 billion electric bet
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Barak David
Barak David Jan 27, 2022 4:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all the companies that about to go bankrupt - announce that they will invest tens of billions and go electric.. how?? ICE OEMs are broke
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email