Mitsubishi Motors to invest in Renault's EV venture, terminating production in China

Peng Chen, DIGITIMES Asia, Taipei 0

Mitsubishi Motors and Nissan have announced investment in Renault's EV compnay. Credit: AFP

Mitsubishi Motors announced on October 24 that it will invest up to EUR200 million (US$212 million) in alliance partner Renault's EV and software company, Ampere. The Japan-based automaker also confirmed that it will terminate vehicle production in China.

Nissan Motor had announced its investment of EUR600 million in Ampere before Mitsubishi Motors followed suit. IC design house Qualcomm also said it will invest in the EV venture. Renault aims to spin off the business and issue an initial publish offering in 2024. The French carmaker plans to hold over half of the new company's shares.

In an announcement on October 24, Mitsubishi Motors said its maximum investment in Ampere will be EUR200 million. It intends to improve its EV development technology and expand its EV line-up through the initiative with partners.

Nikkei Asia reported that Mitsubishi Motors aims to purchase EVs developed and manufactured by Ampere, selling them under its brand. The move will help the company keep its development costs low as it transitions to EVs.

Mitsubishi Motors announced on Tuesday that it will terminate vehicle production of GAC Mitsubishi Motors, its joint venture with GAC Motor, in China. Mitsubishi Motors cited the market changes in China in the past two to three years and the faster-than-expected EV shift. The statement came after rumors about the Japanese carmaker ending production in China arose.

The automaker said it released a new model in December 2022 to recover sales volume but failed. It has suspended production in China since March 2023 to adjust its inventory.

With the termination of vehicle production in the worlds' largest EV market, Mitsubishi Motors said it will record JPY24.3 billion (US$) of structural reform-related expenses in the financial statements for the fiscal year ending March 31, 2024.