In the latest move to adapt to the dynamic changes in the industry, the trinity of the Renault-Nissan-Mitsubishi partnership have started a fund for $200 million. Sources have attested that Mitsubishi plans to invest 20%, Renault and Nissan will finance 40% each of the fund. The aim of setting up such a fund is to invest into start-ups.
Reportedly, the fund will be unveiled Chief Executive Officer Carlos Ghosn in Las Vegas at the CES Tech Industry Show next Tuesday. Prominent car-makers have realized that investing in tech startups will allow them move ahead in acquisitions much faster. When the industry is as competitive it helps.
The auto industry which traditionally relies on ownership, is gradually coming to terms with services like Uber and other car-sharing platforms which have taken over. Self-driven cars and electric models are also flooding the market.
BMW is the latest automobile company to have ventured into this sector through its 500 million Euro investment in iVentures fund. It is the biggest in-house facility that is owned by such a brand. This will allow BMW to now expand into car-sharing and other ride software companies.
While Nissan has refused to discuss further investment plans The fund will be set up and planned by Francois Dossa, head of a Dutch joint venture.