Renault, Nissan, And Mitsubishi Detail Alliance Business Changes

31. May 2020 - Motor1

Renault, Nissan, And Mitsubishi Detail Alliance Business Changes

Nissan will lead the operations in North America, Renault in Europe.

The Renault-Nissan-Mitsubishi alliance was shocked last year when former Nissan boss Carlos Ghosn left Japan and arrived in Lebanon on a private jet coming from Turkey on December 30 to escape Japan's "rigged" system of justice. And if that wasn't enough, the coronavirus pandemic pushed the French automaker to the edge of the rock forcing it to consider eliminating a number of models. Now, finally, the alliance has announced a new business strategy that should help it withstand the ongoing economic crisis.

In a lengthy press release from earlier today, the alliance detailed its updated business plan and the part that caught our attention the most is the so-called principles of the leader-follower scheme for vehicles. Basically, it says that in every segment the group will have one "mother" model with sister vehicles engineered by the "leading" company, with the support of the "followers'" teams. This new business model is expected to generate reduced vehicle development investments of up to 40 percent.

Another new strategy would see each company from the alliance lineup focusing on one or several core regions of the world with the aim to be "among the most competitive and to serve as a reference for the others to enhance their competitiveness." According to this new allocation, Nissan will be the reference for China, North America, and Japan; Renault will be responsible for Europe, Russia, South America, and North Africa, while Mitsubishi will cover the ASEAN and Oceania regions.

Under these new internal roles, Nissan would lead the compact SUV segment renewal after 2025, while Renault will be responsible for the subcompact SUV segment. The alliance estimates that close to 50 percent of its models will be developed and produced under the leader-follower scheme by 2025.

"The Alliance is a unique strategic and operational partnership in the automotive world and gives us a strong edge in the ever-changing global automotive landscape," commented Jean-Dominique Senard, chairman of the Renault-Nissan-Mitsubishi alliance. "The new business model will enable the Alliance to bring out the most of each company's assets and performing capabilities, while building on their respective cultures and legacies."

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