Renault will produce the Alliance vehicles in Europe after a change in the business model

27/05/2020

Renault will produce the Alliance vehicles in Europe after a change in the business model
  • Nissan will be a reference in China, North America and Japan
  • Renault will handle Europe, Russia, South America and North Africa
  • Mitsubishi to Lead Association of Southeast Asian and Oceanian Nations

The Renault-Nissan-Mitsubishi Alliance today announced a new cooperative business model that aims to enhance the competitiveness and profitability of its three companies.

Thus, the main novelty is that each of the brands will be in charge of leading the production of vehicles in different regions.

Under this scheme, Nissan would be a reference in China, North America and Japan; Renault in Europe, Russia, South America and North Africa; and Mitsubishi at the Association of Southeast Asian and Oceanian Nations. Investors have celebrated the decision, leading the company to rise 17.47% on the Paris stock exchange.

Updates to the companies’ product portfolio will follow the leader-follower scheme, and both leader and follower vehicles will be produced using the most competitive configuration.

In this way, the renewal of the C-SUV segment from 2025 will be led by Nissan, while the future renewal of the B-SUV segment in Europe will be carried out by Renault.

In Latin America, B product platforms will be streamlined, evolving from four variants to one for Renault and Nissan products. This platform will be produced at two plants, each of which will produce for Renault and Nissan.

In Southeast Asia and Japan, Alliance members will seek selected opportunities under the same scheme, such as the kei car collaboration between Nissan and Mitsubishi Motors.

With all of the above, nearly 50% of the Alliance models will be developed and produced under the leader-follower scheme by 2025.

The president of the Alliance and Renault Operating Board, Jean-Dominique Senard, pointed out that “the three companies of the Alliance will cover all vehicle segments and technologies, in all geographical areas, for the benefit of each client, at the same time that increase their respective competitiveness, sustainable profitability and social and environmental responsibility “.

Member companies plan to take advantage of the Alliance’s existing benefits in areas such as joint purchases, leveraging their respective leadership positions and geographic strengths to support the business development of their partners. The leader-follower scheme is expected to offer an investment reduction model of up to 40% for vehicles that fully follow this scheme. Those benefits are expected to add to the conventional synergies that already exist today.

In terms of technological efficiency, the Alliance members will continue to capitalize on existing assets to ensure that each member company continues to share the investment in platforms, mechanics and technologies. This exchange has served for the development of engines and platforms and has allowed the launch of the CMF-B platform for Renault Clio and Nissan Juke, as well as the kei car platform for Nissan Dayz and Mitsubishi eK Wagon. The CMF-C / D and CMF-EV platforms will be as follows.

The leader-follower scheme will extend from platforms and mechanics to all key technologies. Thus, Nissan will lead autonomous driving and the CMF-EV platform for electric motors; Renault, connected car technology and the central system of electrical and electronic architecture, as well as CMF-A / B platforms for electric motors; and Mitsubishi will handle the plug-in hybrid for the C / D segment.

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