Nissan and Renault unveil steps to cut costs and revamp alliance
The three-way auto alliance among Renault SA, Nissan Motor Co. and Mitsubishi Motors Corp. will standardize platforms further and push for more joint purchasing to reduce costs, according to the new business strategy announced Wednesday. | REUTERS. Sketched by the Pan Pacific Agency.
TOKYO, May 27, 2020, Bloomberg. Renault SA and Japanese partners Nissan Motor Co. and Mitsubishi Motors Corp. on Wednesday unveiled steps to standardize platforms further and push for more joint purchasing to reduce costs, with each company focusing on its strengths, The Japan Times reported.
The measures will help deliver savings of as much as 40 percent in model investments for jointly developed vehicles, the companies said. Nissan will focus on autonomous driving, Renault on the body of electric cars and electric powertrains while Mitsubishi Motors will work on plug-in hybrids, they said.
Renault, Nissan and Mitsubishi Motors need each other more than ever now, with the global coronavirus pandemic forcing automakers to shutter showrooms and factories. The industry is also facing a once-in-a-generation shift to electric vehicles and autonomous driving that will require significant investment in technology and filter out losers and winners. After coming under strain last year, the partnership is seeking a fresh start, backed by new measures at the companies to improve profitability.
“The new model focuses on efficiency and competitiveness, rather than on volumes,” Jean-Dominique Senard, chairman of the Alliance Operating Board and Renault, said in an online news conference.
Nissan will lead efforts in China, North America and Japan while Renault will focus on Europe, Russia, South America and North Africa. Mitsubishi Motors will continue its efforts in Southeast Asia, where it already has a strong footprint.
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