Nissan in talks to sell battery biz to Panasonic

Nissan in talks to sell battery biz to Panasonic

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Nissan Motor is in talks with Panasonic and overseas companies including Chinese firms over the possible sale of its controlling stake in a car battery manufacturing venture, sources said.

Two people with knowledge of the matter said on Saturday that the Japanese automaker wants to sell its 51 per cent stake in Automotive Energy Supply Corporation, which makes lithium-ion batteries for electric vehicles. The company is jointly owned by NEC.

The Nikkei daily on Friday reported that Nissan was looking to sell the company because it would be cheaper to buy batteries for its electric vehicles including its Leaf model from other makers. The newspaper did not say where it obtained the information. Talk of the sale “is speculation, and is not based on any announcement by us”, Nissan said in an email. Spokesmen for Panasonic and NEC declined to comment. Competition to supply batteries for electric vehicles is heating up due to expectations that a growing number of lower emission cars will be produced in the coming years.

Tesla Motors, which currently procures batteries for its electric vehicles from Panasonic, is planning to boost its total vehicle production to 500,000 in 2018 – two years earlier than its original target. Nissan and Renault, under Carlos Ghosn, who heads both companies, have bet more heavily on electric cars than mainstream competitors. In 2009 the two companies pledged to invest Euro 4 billion ($4.43 billion) to build models including the Nissan Leaf compact and as many as 500,000 batteries per year to power them.

Sales of the Leaf and those of other electrical vehicles, however, have been disappointing, meaning Nissan and NEC have been unable to lower battery costs through mass production.

Nissan is also in the process of selling its 41 per cent stake in auto parts supplier Calsonic Kansei, sources have told Reuters.

In May, the automaker agreed to buy a 34-per cent stake in Mitsubishi Motors for about $2.2 billion as it seeks to better compete with bigger rivals such as Toyota Motor and Volkswagen.


NEW ROAD FOR CARMAKER

  • Nissan Motor wants to sell its 51 per cent stake in Automotive Energy Supply Corporation, which makes lithium-ion batteries for electric vehicles
  • In 2009, Nissan and Renault, pledged to invest Euro 4 billion ($4.43 billion) to build models including the Nissan Leaf compact and as many as 500,000 batteries per year to power them
  • Nissan is also in the process of selling its 41 per cent stake in auto parts supplier Calsonic Kansei
  • The automaker agreed to buy a 34 per cent stake in Mitsubishi Motors for about $2.2 billion to compete with bigger rivals such as Toyota Motor and Volkswagen
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