Mitsubishi Motors (7211.T) announced on Tuesday that it intended to invest up to 200 million euros ($213.66 million) in the brand-new electric car subsidiary of its French rival Renault (RENA.PA).
Through its investment in the Renault EV subsidiary Ampere, Mitsubishi has issued a statement indicating that the company intends to advance its electric vehicle (EV) development expertise and increase the number of battery-powered cars in its range.
After finalizing a restructured alliance in July, Mitsubishi’s partners, Renault and Nissan Motor (7201.T), have decided to invest in Ampere, which led to the company’s decision to invest.
In line with its strategic investor role and goal of earning a board seat in the newly formed firm, Nissan has already pledged to invest in a unit of up to 600 million euros ($640.98 million).
This investment provides the potential for developing new cars that are kind to the environment, particularly as the globe moves toward cleaner and more ecologically friendly ways of transportation. New electric cars, improved battery technology, and increased charging infrastructure options are anticipated to emerge due to the collaboration between Renault and Mitsubishi.
A 200 million euro investment symbolizes the commitment to meet the rising demand for electric cars and lower carbon emissions. It will enable both businesses to effectively compete in the electric vehicle market and contribute to a more environmentally friendly future for the automotive industry. This partnership has the potential to pave the way for other partnerships in the industry as automotive manufacturers band together to tackle the problems posed by climate change and create a cleaner, greener environment for future generations.
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