Looks like Nissan is buying out NEC and selling the whole thing to a Chinese firm, including the TN battery plant. Reuters says their info is coming from Nissan directly.
https://www.reuters.com/article/us-niss ... SKBN1AO0K1
jhm614 wrote:Looks like Nissan is buying out NEC and selling the whole thing to a Chinese firm, including the TN battery plant. Reuters says their info is coming from Nissan directly.
https://www.reuters.com/article/us-niss ... SKBN1AO0K1
Aug 8, 2017
Nissan to sell electric battery business to GSR Capital
YOKOHAMA, Japan – Nissan Motor Co., Ltd. (Nissan) today announced it has entered into a definitive sale and purchase agreement with GSR Capital (GSR), a private investment fund, for the sale of Nissan's electric battery operations and production facilities to GSR.
The sale and purchase agreement covers Nissan's battery subsidiary, Automotive Energy Supply Corporation (AESC), as well as battery manufacturing operations in Smyrna, Tennessee, owned by Nissan North America Inc. (NNA), and in Sunderland, England, owned by Nissan Motor Manufacturing (U.K.) Ltd. (NMUK). Assets sold to GSR will also include part of Nissan's Japanese battery development and production engineering operations located in Oppama, Atsugi and Zama.
Hiroto Saikawa, president and chief executive officer of Nissan, said: "This is a win-win for AESC and Nissan. It enables AESC to utilize GSR's wide networks and proactive investment to expand its customer base and further increase its competitiveness. In turn, this will further enhance Nissan's EV competitiveness. AESC will remain a very important partner for Nissan as we deepen our focus on designing and producing market-leading electric vehicles."
Sonny Wu, chairman of GSR Capital, added: "The acquisition of AESC represents an important step for us in the new energy vehicle industry chain. We plan to further invest in R&D, expand existing production capacity in the U.S., UK and Japan, and also establish new facilities in China and Europe, enabling us to better serve customers around the world. With these capabilities and plans added to the battery business' already skilled workforce, high technical capabilities and proven product-quality track record, we will be in a very good position for growth."
The workforce at all facilities covered by the deal, including the production plants at Zama, Sunderland and Smyrna, will continue to be employed. The headquarters and development centers of the business will remain in Japan.
Nissan will implement the transaction by first taking full control of AESC – founded in 2007 to develop advanced lithium-ion batteries – by acquiring the combined 49% minority holding held by NEC Corporation and its wholly owned battery and electrode subsidiary, NEC Energy Devices, Ltd (NECED).
NEC today announced its approval of the sale of AESC shares to Nissan and the fact that it is in negotiations with GSR for the sale of NECED.
Today's announced transaction is subject to normal consultation with staff representative bodies and, pending regulatory approvals, is expected to be completed by the end of December 2017. The transaction is contingent on GSR concluding purchase of all NECED shares from NEC. Financial terms have not been disclosed.
Nissan bucks the tide in electric-car age
Carmaker raises eyebrows by unloading battery unit to Chinese fund
TOKYO -- Nissan Motor's planned sale of an electric-car-battery subsidiary to a Chinese investment fund stands out in a sector where many rivals are pouring more resources into building the key component of increasingly popular electric vehicles.
The bold move seems to comport with the head-over-heart approach of charismatic Chairman Carlos Ghosn even as it raises concerns over disadvantaging Nissan down the road. Whether the company's foresight proves to be 20/20 remains to be seen...
Ghosn, who also heads the Nissan-Renault alliance, highlighted the Nissan group's lead in electric vehicles at the company's shareholders meeting this June. He noted how the group, including capital partner Renault, had sold 460,000-plus electric vehicles so far, twice as many as American media darling Tesla.
Ghosn has declared that the group will invest 1.2 billion euros ($1.41 billion) to 2020 in the development of electric-vehicle and other technologies. Nissan is gearing up to roll out this year a revamped Leaf electric car with an AESC battery.
Batteries are as essential to electric cars as engines are to conventional autos. AESC was created back in 2007, during a time of skepticism over the popularization of electrics. So Nissan had no choice but to make the batteries in-house, according to a company official.
But the landscape has shifted radically over the past year or two...
Despite the bright prospects for its battery business, Nissan is stepping away from production. This way, "we can focus more on developing and producing electric vehicles" themselves, President Hiroto Saikawa said.
The sale will also likely help Nissan save money on vehicle production. The price of automotive lithium-ion batteries will drop 16% to 21,000 yen per kilowatt-hour of output in 2020, research company Fuji Keizai projects. Buying batteries will enable Nissan to compare different suppliers, making more economic sense...
SageBrush wrote:Not 'sticks with,' but 'stuck with.'
The Chinese missed 3 deadlines to pay, I presume defaulting on the contract. Nissan is now looking for another buyer.
Know anybody interested in factories that can make batteries that last a few years in hot weather ? Bargain price !
The Nissan EV program has been in caretaker mode for 5 years. Almost no investment or improvement. The writing has been on the wall for years. Will Nissan decide on another big gamble and try again ? That would be nice, but no sign of it so far and I have my doubts whether they even have the expertise. Let alone the capital.
Nissan generated an operating profit of 574.8 billion yen on net revenues of 11.95 trillion yen