The Japanese car manufacturer announced on Wednesday that it was selling its 1.54% stake in the German auto giant Daimler.

The sale of the company's share followed a similar move by Nissan's French partner Renault.

The 16.4 million shares were sold at €69.85 ($83.74) to professional investors, bringing in around €1.15 billion for the Japanese company.

Nissan said the divestment would allow it to "further strengthen and enhance its business competitiveness, including investments to promote electrification."

How is Nissan faring?

Nissan's full-year forecast for the fiscal year to March projected a loss of 530 billion Yen ($4.8 billion, €4 billion), a slightly better prediction than earlier estimates.

The company has been trying to rebuild its reputation after it was damaged by the departure of the now-fugitive former CEO Carlos Ghosn.

The Japanese automaker maintains a partnership with Renault and Mitsubishi. The French car manufacturer Renault announced a record loss in 2020, hit hard by the pandemic, after which it sold its entire 1.54% share in Daimler.

What will Nissan do with the money from the sale?

The Japanese company said it was planning to invest the money it made from the sale into its business including in building up its electric motors capability.

Nissan and Daimler would continue their industrial cooperation, the Japanese company said, adding: "The two groups continue to collaborate in several areas."

The German car manufacturer had been working with Renault-Nissan on the joint production of motors.

Nissan announced losses of $6 billion in the previous fiscal year, its first losses in over a decade. As a result the car company said it was having to make difficult choices, including shuttering a plant in Barcelona.

ab/msh (dpa, AFP)