Nissan is to invest $663 million in Renault’s EV unit.

Nissan intends to invest 600 million euros ($663 million) in Ampere, Renault’s European electric vehicle and software subsidiary. The two businesses also intend to increase their cross-shareholdings in the French-Japanese auto alliance, they announced on Wednesday. The adjustment will put an end to a difference that had produced irritation between the automakers.

Renault Group and Nissan will retain 15% cross-shareholdings in each other, while Renault will transfer 28.4% of its Nissan shares into a French trust, according to a statement from the firms.”The agreements signed today allow us to enter the next chapter of the alliance,” said the group’s head, Jean-Dominique Senard. The modification is subject to regulatory approval.

Nissan was on the edge of bankruptcy when the collaboration was formed in 1999. The earlier-announced agreement also calls for the companies to collaborate on marketing, automobiles, and technology across Latin America, India, and Europe. Nissan also released financial statistics, revealing that its net profit more than doubled in April-June to 105.5 billion yen ($753 million). According to the company, sales in most markets were strong, offsetting weakness in China.

The Japanese yen’s weakness also aided Nissan’s bottom line. When converted into yen, a weak yen increases the value of Japanese enterprises’ abroad earnings. Quarterly revenue increased 36% year on year to 2.92 trillion yen ($20.8 billion). Nissan reduced its sales forecast for the fiscal year ending March 2024 to 3.7 million vehicles, down from 4 million units previously. This objective is still higher than the previous fiscal year’s 3.3 million vehicle sales.

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