TOKYO (Reuters) – Renault and Nissan will work more closely together to make electric cars, they said on Thursday, detailing their plans to spend 23 billion euros ($26 billion) on the transition to cleaner vehicles over the next five years.
The two-decade old alliance, which also includes Mitsubishi Motors, said it would increase the number of common platforms for electric vehicles (EV) to five from four.
The commitment to pool resources comes as the three companies face growing competition from bigger carmakers with deeper pockets, such as Toyota Motor, which in December pledged to spend $70 billion to electrify its fleet, as well as EV specialists such as Tesla Inc.
Now the world’s most valuable automaker, Tesla forecast on Wednesday its deliveries in 2022 would grow 50% year on year.
The money promised by Renault, Nissan and Mitsubishi Motors on Thursday comes from funding they announced last year.
Nissan said in November it would spend 2 trillion yen ($17.6 billion) over five years to accelerate vehicle electrification, including on EVs and hybrid gasoline-electric cars.
Holding their alliance together is a cross-shareholding relationship, with Renault owning 43.4% of Nissan, which in turn has a 15% non-voting stake in the French car company and a third of Mitsubishi Motors’ stock.
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(Reporting by Tim Kelly; Editing by Mark Potter)