Mitsubishi Motors to speculate as much as 200 million euros into Renault’s new EV unit By Reuters

By Daniel Leussink and Gilles Guillaume

TOKYO/PARIS (Reuters) – Japanese automaker Mitsubishi Motors (OTC:) will make investments as much as 200 million euros ($214 million) within the new electrical automobile unit of French counterpart Renault (EPA:), Mitsubishi mentioned on Tuesday.

Renault Chairman Jean-Dominique Senard, talking on the sidelines of an occasion in Paris, mentioned he welcomed Mitsubishi’s funding and had all the time been assured the corporate would participate in Ampere.

Mitsubishi mentioned in a press release it seeks to enhance its EV growth know-how and develop its lineup of battery-powered automobiles with the funding within the Renault EV unit, named Ampere.

“As a primary step of this collaboration, Ampere will provide an EV on an OEM (unique gear producer) foundation within the European market,” the assertion mentioned.

Renault’s Senard mentioned he intends to speak in additional element with Mitsubishi throughout an upcoming journey to Japan.

The choice to put money into Ampere comes after Mitsubishi’s companions, Renault and Nissan (OTC:) Motor, finalised a restructured alliance in July.

Nissan has already dedicated to speculate as much as 600 million euros ($640.98 million) within the unit, according to it being a strategic investor and securing a board seat on the brand new firm.

Renault is trying to record the Ampere enterprise as a separate entity on the inventory market subsequent yr.

Shortly earlier than the announcement, the newspaper reported Mitsubishi’s funding into Ampere was anticipated to be about 20 billion yen ($133.85 million).

Like different Japanese automakers, Mitsubishi has struggled in China, the world’s largest automobile market, the place it has confronted fierce competitors from native rivals which have aggressively gained market share with battery-powered automobiles.

($1 = 0.9361 euros)

($1 = 149.4200 yen)