Nissan Could Sell Entire Stake in Calsonic Kansei

Nissan Motor Co. is preparing plans to sell its 41% stake in components supplier Calsonic Kansei Corp., The Nikkei reports.

The newspaper, which cites no sources, says Nissan will seek first-round bids for the holding in June. The sale could raise more than 100 billion yen ($914 million). Nissan will use the proceeds to help fund research on electric vehicles and artificial intelligence, according to the report.

Calsonic Kansei’s products include exhaust systems, heat exchangers and instrument clusters. The company generates about 1.1 trillion yen ($10 billion) in sales per year, with 80% of its revenue coming from Nissan. The company operates more than 50 manufacturing facilities in more than a dozen countries worldwide.

Calsonic Kansei’s operating profit jumped 21% to a record 38.2 billion yen ($349 million) in the fiscal year ended March 31, thanks largely to surging vehicle sales in North America.