Renault-Nissan-Mitsubishi establish new business model of cooperation

The alliance Renault-Nissan-Mitsubishi establishes a new business model of cooperation. The aim is to strengthen the competitiveness and profitability of the three partner companies. This is what the companies Groupe Renault, Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation announced two days ago at a joint press conference.

The guiding principle of the collaboration is the so-called “leader-follower” principle for vehicles and technologies in order to achieve greater efficiency and competitiveness in these areas. In addition, the companies will be the reference for the region in which the key strengths of the reference company lie.

The three companies want to build on the existing benefits of the alliance, such as joint purchasing, by using their respective leadership positions and geographic strengths to support their partners.

“The alliance is a unique strategic and operational partnership in the automotive world and gives us a strong advantage in the ever-changing global automotive landscape,” said Jean-Dominique Senard, Chairman of the Alliance Operating Board and Renault President. “The new business model will enable Allianz to make optimal use of the strengths and performance of the individual companies while building on their respective cultures and traditions. The three companies will cover all vehicle segments and technologies in all regions and their respective competitiveness, sustainable profitability and expand social and environmental responsibility.”

The following principles of the “Leader-Follower” principle in the field of vehicles were adopted as the basis for the cooperation :

  • Stronger standardization – from platforms to body parts
  • A “mother car” (leader car) and “sister vehicles” are to be developed by the leading company for each vehicle segment.
  • The leader cars and the vehicles following them are to be manufactured for all brands using the most competitive configuration, if necessary also through joint production.
  • Cooperation on light commercial vehicles will continue. The “leader-follower” model is already being used successfully here.

Overall, the alliance partners expect a reduction of model investments by up to 40 percent for models that are developed and built entirely on the basis of this approach. These advantages should be implemented in addition to the synergies already realized today.

The alliance also adopted the principle of defining different regions of the world as reference regions for the individual partners. Each company will focus on its core regions with the aim of being among the most competitive there and increasing the competitiveness of its partners.

In this context, Renault will be the reference for Europe, Russia, South America and North Africa, Nissan in China, North America and Japan and Mitsubishi Motors in the ASEAN countries and Oceania.

By making each company a reference company in the respective regions, fixed costs can be shared better while using the strengths of each individual partner.

The respective vehicle ranges will be updated in future according to the “leader-follower model” . Examples include:

  • Nissan will be responsible for the renewal of the C-SUV segment after 2025, while Renault will oversee the future renewal of the B-SUV segment in Europe.
  • In Latin America, the B-segment platforms are standardized and converted from four to only one platform for Renault and Nissan.
  • In Southeast Asia and Japan, the alliance partners will pursue further cooperation options, such as the Kei Cars cooperation between Nissan and Mitsubishi Motors.

By 2025, a total of almost 50 percent of the models of the Alliance Renault-Nissan-Mitsubishi are to be developed and produced on the basis of the “Leader Follower” program.

In the area of technologies , the alliance partners will use their strengths so that every company benefits from the investments in platforms, drive technology and technologies. This division has proven to be efficient in the development of powertrains and platforms and has made it possible, for example, to successfully launch the CMF-B platform for the Renault Clio and Nissan Juke or the Kei-Car platform for the Nissan Dayz and Mitsubishi eK. The CMF-C / D and CMF-EV platforms will follow soon.

The “leader-follower” model is being expanded from platforms and drive trains to all key technologies. One company takes the leading role:

  • Autonomous driving: Nissan
  • Vehicle networking: Renault for Android-based platforms, Nissan for the “China” platform
  • Vehicle electronics architecture (e-body): Renault
  • Electric drive (E-Powertrain): CMF-A / B segment ePowertrain: Renault; CMF-EV ePowertrain: Nissan
  • Plug-in hybrid C / D segment: Mitsubishi

The new business model will enable Allianz companies to make the best use of their expertise and competitiveness to strengthen the Alliance as a whole in a radically changing global automotive environment.

Author: Nabeel K

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