Renault-Nissan-Mitsubishi union launches $1-B venture capital fund

TOKYO — The Renault-Nissan-Mitsubishi alliance said it is setting up a venture capital fund that plans to invest as much as $1 billion over five years, the latest move by major car makers as they seek to adapt to rapid industry change by investing in start-ups.

It is set to be largest corporate venture capital fund in the auto industry over the period until 2022, the companies said in a statement.

The traditional auto industry model based on individual ownership is threatened by pay- per- use services such as Uber, as well as ride- and car- sharing platforms, a challenge heightened by shifts towards electric and selfdriving cars.

The fund expects to invest up to $ 200 million in its first year and key potential areas of investment include vehicle electrification, autonomous systems and artificial intelligence, the statement said.

It will be 40% financed by Renault SA, 40% by Nissan Motor Co. Ltd and 20% by Mitsubishi Motors Corp.

The plan, reported by Reuters last week, calls for the firms to establish the fund as a Dutchregistered joint venture headed by Francois Dossa, a former banker who led Brazil operations for Societe Generale and then for Nissan, sources familiar with the matter said.

The first deal by the fund, called Alliance Ventures, will be a strategic investment in Ionic Materials, a US- based firm that is developing solid- state cobalt-free battery materials.

The $200-million initial venture capital investment comes in addition to more than €8.5 billion ($10.2 billion) in combined annual research and development investments by the three automakers. —