Carmaker Alliance Sets Up $200 Million Start-Up Fund

Renault-Nissan-Mitsubishi alliance is setting up a $200 million venture fund to invest in new mobility tech startup, according to reports (Reuters). The fund will be 40% financed by Renault, 40% by Nissan and 20% by Mitsubishi.

The new mobility tech fund due to be unveiled by Chief executive Carlos Ghosn at the CES tech industry show in Las Vegas next month will allow the auto alliance to move fast on acquisitions ahead of their competition.

Consumers’ new habit of favoring specialized vehicles designed for very specific needs instead of the all-purpose cars of today will lead to a decline in private-car ownership. The increasing speed of innovation, especially in software-based systems will further increase demand for upgradeability in privately used cars. Connectivity, alongside autonomous technology, will further allow cars to become a platform for passengers to use their time in transit freed up to productive activities.

The Renault-Nissan-Mitsubishi fund is being set up as a Dutch-registered joint venture headed by Francois Dossa. Renault has made investments including Marcel, a car-sharing platform based out of Paris, and Jedlix, a Dutch smart vehicle-charging technology maker. Renault’s investment arm took control of failed on-demand taxi-hailing app Karhoo to relaunch the business under new management.