Renault-Nissan alliance unveils future plans

According to their reworked strategy, the alliance will chalk out a turf for each of the brands and will focus on developments as per their respective strengths. The alliance continues to be in opposition of merger plans

It’s no secret that over the past few years Renault and Nissan have been having some trouble in their relationship as part of the Renault-Nissan-Mitsubishi alliance. To make things even more complicated, the coronavirus pandemic has had a massive impact on automotive sales and the industry on the whole. In an effort to set things right, Renault and Nissan recently unveiled their future plans.

At the top of the priority list will be right-sizing the products produced and developed by the alliance in a bid to make savings. Member companies will also leverage their positions and geographical strengths to support their partners’ business development. To that end, the alliance will now follow a leader-follower system as per which more models will be produced by the member companies on every platform. For instance, in the Latin American market the alliance will go from developing products based on four platforms down to a single platform. The three companies will also continue to build on product sharing in light commercial vehicles. The focus will be on the leader car and the sister vehicles will be engineered by the lead company with support from the following brand’s team. With that in mind, Nissan will emphasise on the C-SUV segment post 2025 while Renault on the B-SUV. Future developments will also be alienated – Renault will channelise its efforts in the development of connected car tech and EVs, while Nissan will give its attention to autonomous tech.  

The alliance will also have a ‘referencing’ model for different geographical markets as per their strengths. Under this strategy, Nissan will lead the charge in the Chinese, Japanese and North American markets. Renault, on the other hand, will focus on the Europe, Russia and South America. Meanwhile, Mitsubishi will concentrate on ASEAN and Oceania.

Speaking about the future plan, Jean-Dominique Senard, Chairman of the Alliance Operating Board and Renault said, “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. 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.” Senard also took the opportunity to reiterate that there are no plans to merge the companies.

As the alliance works towards a leaner future, it is likely that they may shut a few facilities across the globe. All of these changes, the alliance claims should help reduce investments by up to 40%. Nissan and Renault are scheduled to reveal their independent restructuring plans in the near future.

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