Renault-Nissan-Mitsubishi Further Strengthens the Use of Resources and Investments

Press release
Published February 2nd, 2020 - 08:35 GMT
All three companies reiterated that the Alliance is essential for strategic growth and enhance competitiveness for each company.
All three companies reiterated that the Alliance is essential for strategic growth and enhance competitiveness for each company.
Highlights
Renault-Nissan-Mitsubishi outlined a new framework to further reinforce its business model and strengthen its management structure.

 

Renault-Nissan-Mitsubishi outlined a new framework to further reinforce its business model and strengthen its management structure. All three companies reiterated that the Alliance is essential for strategic growth and enhance competitiveness for 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 capitalize on the individual company’s strengths and complement their strategies.

The AOB also reaffirmed key programs 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

We are reinforcing the collaboration models to fully leverage the strengths within each company to enhance our leadership across regions, products and new technologies.

As of today, the AOB has decided:

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

4.  On 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.

Evolution of Alliance governance to ensure execution

The AOB, which consists one chairperson and the chairperson or chief executive officer of each member company, also agree 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 maximize the collaboration within the Alliance, while preserving the identity and autonomy of each member company.

Background Information

Nissan Middle East

Nissan’s heritage in the Middle East goes way back to 1957, when the first Nissan vehicle was sold in Saudi Arabia. Since then the Nissan Legacy has taken deep roots in the hearts of the Middle East people by becoming an integral part of their lives.

Currently Nissan is one of the most popular and successful automobile brands in the Middle East boasting of a strong line-up ranging from popular passenger cars to powerful 4x4 series and commercial vehicles.

In its quest to closely understand the local needs of its customers, Nissan Motor Co. Ltd. in June, 1994 set up a regional Middle East head quarters in Dubai, thus becoming the first Japanese car manufacturer to accomplish this feat. The Nissan Middle East FZE office houses a highly sophisticated training center which serves as an excellent training ground for undertaking Nissan customer care and service activities.

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