The Renault-Nissan alliance plans to invest 23 billion euros in electric vehicle technology

The Franco-Japanese alliance of companies Renault (Renault) and Nissan (Nissan) announced that it plans to invest 23 billion euros in electric vehicle technology over the next five years.

The alliance, which includes the smaller Japanese automaker Mitsubishi, will share research, auto parts and technology with the goal of reducing costs and producing 35 new models of electric vehicles by 2030 for markets around the world.

Nissan will lead the development of a new generation battery for electric vehicles, while Renault will lead the development of electronics and software to connect millions of vehicles and provide digital services.

Automakers around the world are trying to save costs and form alliances. Recent supply problems linked to restrictions due to the coronavirus, as well as growing concerns about climate change, have made such coordination more urgent than ever.

The company Tesla has grown into a powerful and extremely profitable competitor, and other companies are also entering the market. Among them is Sony, the maker of the PlayStation video game platform, which recently unveiled a prototype electric car. Leading Japanese carmaker Toyota has also announced an aggressive plan for electric vehicles.

Renault owns 43,4 percent of Nissan, which owns 15 percent of Renault and 34 percent of Mitsubishi. The French government owns 15 percent of Renault.

The Renault-Nissan alliance was created by Carlos Ghosn, whom Renault sent to Nissan in 1999 to save the company from bankruptcy.

Gon made the company one of the most successful in the global automotive industry, but he was arrested in Japan in 2018 on charges of financial fraud. Gon fled to Lebanon in late 2019 and maintains his innocence.