Renault-Nissan-Mitsubishi Alliance Unveils New Framework for Investments, Resources

Eager to bounce back and put the Carlos Ghosn debacle behind them, the Renault-Nissan-Mitsubishi Alliance announced its new framework for the use of its resources and investments in an effort to further reinforce its business model and solidify its management structure.

All three companies emphasized that their Alliance remains essential for the strategic growth and enhanced competitiveness of their respective companies.

The new framework outlines five points of strategy that the Alliance describes should “fully leverage the strengths within each company to enhance our leadership across regions, products and new technologies.” These strategy points are enumerated below:

1. On regions, each of the three companies will be the reference company for a dedicated region: Nissan for China, Renault for Europe, Mitsubishi for South East Asia.
2. The engineering will work on a leader/follower model, expanding this scheme to platforms, powertrains and key technologies. Thus, one company will take the lead in the Alliance for the development of each key technology, which will then be spread among Alliance partners.
3. The Alliance Operating Board (AOB) also decided to pool the three companies’ CAFE credit in Europe as early as 2020.
4. On light commercial vehicles (LCV), Renault will develop and manufacture, in Sandouville plant, the Mitsubishi van based on Renault Trafic platform to be sold in the Oceania region.
5. Strategic mid-term plans of the three companies will be disclosed simultaneously around May 2020, integrating the major consequences of the Alliance Operating Board decisions.

“This new scheme will enhance the effectiveness and efficiency of Alliance projects, to further strengthen use of resources and investments within the three companies,” the Alliance said.

The announcement of the new framework is the latest in a list of overhauls happening over at Nissan, following the inauguration of its new CEO, Makoto Uchida, beginning December 1, 2019.

The new framework was ratified at a meeting of the AOB in Yokohama, Japan. During the meeting, the AOB also reaffirmed key programs discussed when the board last met in November. These programs included support initiatives that will enable each member company to increase competitiveness and profitability amid the industry shift to electrification and new mobility services.

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