Nissan explores growth plans in software and EVs without Renault

Nissan has announced its growth plans across multiple areas like software and electric vehicles as the automaker’s alliance with Renault nears its end. Nissan, Japan’s third-largest automaker by sales, is looking to partner beyond the auto industry for software connecting vehicles to cloud-based services.

Nissan explores growth plans in software and EVs

According to people familiar with the matter, this initiative aims to make Nissan vehicles smarter and more connected, solving a major weakness for the automaker. Nissan is also exploring a broader strategy for an all-battery and plug-in EVs for the Asian and North American markets.

This development comes as Nissan and Renault inch closer to ending their alliance. The oversight board recently held a meeting to discuss a rebalance that will allow Renault to reduce its stake in Nissan from 43% to 15%. The drop will match the state that Nissan has in Renault.

This deal will be completed by mid this year. The alliance has been marred with criticism from Nissan executives claiming that Renault failed to pay its fair share of the costs needed to support innovation and development.

Nissan will continue to save in some areas, such as procurement with Renault. Nissan does not have plans to offer engineering support to French automaker Ampere despite a planned investment. Talks between Nissan and Ampere are still ongoing.

Nissan wants to be independent

The plans by Nissan to end its alliance with Nissan could be part of a long-term plan by the company that will be announced by the end of this year. The automaker appears focused on improved operational efficiency, electrification, and software development that supports connectivity and self-driving.

Nissan and Renault are currently working on the final terms of this partnership, which will make the two companies more competitive. The companies are also expected to share the details of cooperative projects in India and Latin America that have already been announced. The new structure will also support faster and more flexible decisions.

Nisan has previously said that its investment in Ampere will boost its European presence and promote new business. Nissan plans to invest and offer the technology needed for the venture. However, the company will limit operational involvement.

This decision pulls Nissan further away from the vision of Carlos Ghosn, who led Renault and Nissan. Ghosn was arrested in Tokyo in 2018 over charges of financial misconduct. Ghosn had said that his arrest was part of a plan to halt a merger. Ghosn fled to Lebanon towards the end of 2019 and has since been a fugitive.

Some executives from the company had said that the alliance talks between Nissan and Renault would have yielded the best results if the equity tie-up was zero percent. However, this was impossible to achieve, but it showed that Nissan needed to progress independently. Nissan shares have gained by 17% this year, and they are on track for the first yearly gain in eight years.