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Renault-Nissan-Mitsubishi rejigs alliance strategy ahead of industry shifts

Renault-Nissan-Mitsubishi rejigs alliance strategy ahead of industry shifts
Renault-Nissan-Mitsubishi rejigs alliance strategy ahead of industry shifts

Renault-Nissan-Mitsubishi has outlined a new framework to reinforce its business model and strengthen its management structure.

All three companies said the alliance is “essential” for the strategic growth of each company.

The new framework, ratified at a meeting of the Alliance Operating Board (AOB) in Yokohama, Japan, will enhance the ability of the alliance member companies to capitalise on the individual company’s strengths and complement their strategies.

The AOB also reaffirmed key programmes outlined at the previous board meeting in November to support initiatives that will enable each member company to increase competitiveness and profitability amid the industry shift to new mobility services.

New framework to leverage member-company strengths 

The AOB has decided that 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.

Engineering within the AOB model will work on a leader/follower model, expanding this scheme to platforms, powertrains and key technologies. Each company will take the lead in the alliance for the development of each key technology, which will then be spread among three partners.

The AOB also decided to pool the three companies CAFE credit in Europe as early as 2020.

The strategic mid-term plans of the three companies will be disclosed simultaneously around May 2020, integrating the major consequences of the AOB 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 AOB said in a statement.

The AOB, which consists one chairperson and the chairperson or CEO of each member company, also agreed to engage actively with the respective board of directors of Renault, Nissan and Mitsubishi Motors to strengthen its governance to operate effectively for the benefit of each member company.

Such initiatives will maximise the collaboration within the alliance, while preserving the identity and autonomy of each member company, the AOB said.