Renault, Nissan and Mitsubishi to increase technology sharing
Renault, Nissan and Mitsubishi have announced details of a new strategy to deepen cooperation in developing and producing cars, in a bid for survival.
The carmakers have been hit hard by the coronavirus pandemic just as they were reworking their partnership after the arrest of chairman Carlos Ghosn.
Last year Ghosn made an astonishing escape from Japan, where he was awaiting trial on charges of under-reporting earnings, breach of trust and misappropriation of company funds, all of which he denies.
The three firms agreed to maintain the Alliance in January, against the backdrop of the Ghosn saga, and are now aiming to cut costs by sharing out their production.
“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,” said Jean-Dominique Senard, chairman of the Alliance.
“The three companies of the Alliance will cover all vehicle segments and technologies, across all geographies, for the benefit of every customer, while increasing their respective competitiveness, sustainable profitability and social and environmental responsibility” he added.
Nissan will now take the lead in China, Japan and North America, while Renault will be the point of reference for Europe, Russia, South America and North Africa. Mitsubishi will lead in Southeast Asia and Oceania.
Senard was adamant there would be no merger between the three companies. “Our model today is a very distinctive model … we don’t need a merger to be efficient,” he told a news conference.
Shares in Renault are up nearly 16 per cent following the news. Nissan was boosted 5.5 per cent while Mitsubishi edged up 2.27 per cent.
French government comes to the rescue
It comes as the French government announced an €8bn (£7.1bn) rescue plan for its car industry. The proposal includes €1bn to provide grants of up to €7,000 to encourage people to buy electric vehicles.
In return, France’s main car producers, Renault and PSA, have promised to focus production in the country. President Emmanuel Macron said no car model currently produced in France should be manufactured in other countries.
On top of the €8bn proposal, Renault is expected to receive a €5bn loan. The carmaker had been planning to unveil a restructuring plan this week that was likely to see the closure of three of its factories.
Macron said the government would only sign off the Renault deal when talks with management and unions had concluded.