Renault, Nissan and Mitsubishi to increase technology sharing
Renault-Nissan-Mitsubishi Alliance
Breaking: Alliance members to adopt 'leader-follower' mode, with each focusing on core regions and technologies
Renault, Nissan and Mitsubishi have reaffirmed their commitment to their automotive Alliance, with the adoption of a new business model that will involve a massive increase in platform, technology and production sharing.
The future of the Renault-Nissan-Mitsubishi Alliance had been in doubt after the arrest in Japan of former chairman Carlos Ghosn, the driving force behind the initiative. But after agreeing to maintain the Alliance in January, the three firms have now agreed a new deal. Alliance chairman Jean-Dominique Senard said the new deal will greatly enhance the cooperation between the three firms, with Alliance chairman Jean-Dominique Senard claiming that it will cut the costs of developing new models by up to 40 per cent.
The Alliance members have agreed a new ‘leader-follower’ scheme that they say will greatly enhance efficiency through a substantial increase in shared production and development. Each firm will become the lead ‘reference’ brand in key regions, and of key technologies.
Under the new deal, Renault will become the lead brand in Europe, and will spearhead development of the next-generation B-segment SUV. Nissan will become the lead firm in Japan, North America and China, and will develop the next-generation Nissan Qashqai-based C-segment SUV, which is due in 2025.
The new deal goes beyond platform sharing and will include the “upper bodies” of vehicles, with the production of models grouped together where possible. As recently reported, that is likely to involve Renault SUVs being built at the Nissan plant in Sunderland in the future.
“We will focus on efficiency and competitiveness, rather than volume,” said Senard. “The new framework will allow each Alliance member to enhance it’s core capabilities, and benefit from the capabilities of the other firms. The aim is to increase the profitability and competitiveness.
“The leader-follow model is not about being a leader against each other. It’s about each Alliance firm becoming a leader in the automotive industry.”
Senard insisted that the new agreement showcased the strength of the Alliance. He added: “There is no doubt about how this scheme will work in the future. If there have been doubts in the market, there are no doubts today.”
*Renault to lead Alliance focus in Europe*
Under the new agreement, each of the three firms will focus on key regions based on their existing market reach, with Renault taking the lead in Europe along with Russia, South America and North Africa.
While Renault will be the lead brand in Europe, both Nissan and Mitsubishi can continue to offer models in each region, although they will likely focus on market segments where they are strong. Nissan is set to outline more details of its future European strategy in a press conference tomorrow (Thursday).
In Europe, the Alliance’s leader-follower scheme will be focused around four product areas: B-segment cars (the Renault Clio and Zoe EV, Nissan Leaf and forthcoming Ariya compact EV), B-SUVs (Renault Captur, Nissan Juke and Dacia Duster), C-SUV (Renault Kadjar, Nissan Qashqai, next-gen SUV) and LCV vans.
During the presentation on the new agreement, the Alliance members gave no indication of future plans for model lines outside of those areas. There have been reports that Renault is set to close a number of factories and axe several product lines; more information on those reports is likely to come when the French firm holds its own press conference on Friday.
Nissan will be the lead brand in China, North America and Japan, while Mitsubishi will lead in the ASEAN and Oceania regions.
Senard also ruled out the possibility of a full merger between the three firms, adding: "I'm confident that, because of the actions we have taken today, in the future we will be a model for other car firms."
*New deal to increase model sharing and efficiencies*
A key part of the new deal is the agreement to increase the Alliance’s ‘standardisation’ strategy. The three companies have already developed a series of common shared platforms that underpin various models, for example with the recently launched Renault Clio and Nissan Juke both based on the CMF-B architecture.
Under the new agreement, the three firms will each take the lead on development of key model segments, developing a ‘mother car’ that will be used as the basis for ‘follower’ vehicles from the other firms. As well as platforms, that will involve sharing upper body elements, with Senard saying production of models would be grouped together where appropriate.
The Alliance claims the savings enabled by the new model in terms of technical development and bulk buying strength will reduce model investment costs by up to 40%.
Under the agreement, nearly half of all Alliance models will be development produced under the ‘leader-follower’ scheme by 2025, with the technology and model segments each firm will take the lead on are based on their existing expertise.
Having essentially created the segment with the Qashqai, Nissan will take the lead of the next-generation Qashqai/Renault Kadjar C-SUV, due after 2025 and based on the CMF-C platform. Renault will take the lead on developing future B-SUV models such as the Renault Captur and Nissan Juke.
The agreement will reduce the number of platforms used by the Alliance from seven currently to four: CMF-A and CMF-B, with development led by Renault, and CMF-C/D and the electric CMF-EV, with development lead by Nissan.
Nissan and Mitsubishi will also work together on a kei car platform for Japan.
*Firms to take lead on key technologies*
As well as future model segments, each Alliance member will take the lead on key technologies.
Nissan will be the lead firm for electric powertrains – for both the CMF-A/B and CMF-EV platforms – autonomous driving and connected car technology in China. Renault will lead on connected car technologies on an Android-based platform and ‘E-body’ electric-electronic architecture. Mitsubishi will build on its success with the Outlander PHEV by leading development of C/D-segment plug-in hybrid models.
*READ MORE*
*Renault-Nissan-Mitsubishi agree to new Alliance deal*
*Renault in talks to build new SUVs at Nissan's Sunderland plant*
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