TOKYO – Nissan is more likely to make investments round 100 billion yen ($725 million) in Renault’s new electrical car unit, the Yomiuri Shimbun newspaper mentioned on Friday, probably clearing a hurdle in drawn-out talks to reshape their automaking alliance.

The Japanese automaker on Thursday settled on the phrases for a contract to overtake its partnership with Renault and agreed with its French companion on the funding quantity within the EV unit, Ampere, the Yomiuri mentioned.

A Nissan spokesperson mentioned discussions concerning the contract, together with the funding quantity, weren’t but finalised.

“Discussions are being held between the 2 firms, however no settlement has been reached but,” the spokesperson mentioned.

Nissan and Renault anticipate Ampere’s enterprise worth will come to eight to 10 billion euros ($8-$11 billion), with Nissan’s funding ratio seemingly coming in under 10 p.c of that quantity, the Yomiuri mentioned, quoting folks with data of the matter.

That will be wanting the 15 p.c most Nissan set in February for the funding.

A Nissan director will probably be a part of the brand new firm, the newspaper mentioned, including that sure restrictions will probably be positioned on the dealing with of mental property from the Japanese automaker.

After months of intense talks, Nissan and Renault agreed in January on the overhaul of their two-decade previous alliance that can see Renault deliver down its stake in Nissan to fifteen p.c from about 43 p.c to place them on an equal degree.

The partnership, which has grown to incorporate junior member Mitsubishi Motors, was based in 1999.