The ‘Alliance Ventures’ fund was created by ex-Nissan CEO Carlos Ghosn for the Renault-Nissan-Mitsubishi Alliance to invest in various startup firms working on technologies relevant to the manufacturers.
Plans for the fund saw an initial investment of US$200 million (AU$309.5 million) by the manufacturers, with the figure to be matched year-on-year and the fund to reach US$1 billion (AU$1.5 billion) by 2023.
However, sources told Reuters the actual yearly investment “never achieves that full amount”.
Above: Nissan CEO Makato Uchida
In the face of the coronavirus COV-19, Nissan’s sales in China – its largest market – were down 80 per cent last month.
While a decision will reportedly not be made official until later this month, a Nissan insider told Reuters: “Of course we’re out. The house is on fire.”
Last week, alliance member Mitsubishi reportedly stated it would not continue to invest into the fund either.