Mitsubishi Motors said on Monday it will not proceed with a planned investment of up to €200 million ($225 million) in Ampere, Renault’s electric vehicle (EV) subsidiary, as the Japanese automaker reconsiders its EV strategy.
The decision marks a reversal of Mitsubishi’s earlier commitment and follows a similar move by fellow Japanese automaker Nissan, which recently withdrew its investment in Ampere to focus on internal restructuring and cost-saving efforts.
Despite pulling the investment, Mitsubishi emphasized it remains open to future cooperation with Renault. “The company remains committed to exploring potential avenues for continued collaboration, including the potential OEM vehicles provided by Renault and Ampere,” Mitsubishi said in a statement.
Renault’s Ampere unit, which was created to spearhead the French carmaker’s EV initiatives, is reportedly generating sufficient internal cash flow to fund its development. “Ampere can support its own growth without needing financing from minority shareholders,” a spokesperson for the company said.
Renault saw a boost in EV sales during the first quarter, helped by the introduction of new models, as it looks to solidify its position in Europe’s competitive electric vehicle market.
Source: Reuters