Renault-Nissan-Mitsubishi confirm Alliance “essential for strategic growth”, outline new business model framework

The Renault-Nissan-Mitsubishi Alliance, in an official statement today, has outlined a new framework which is aimed at further reinforce its business model and strengthen its management structure. All three companies have 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 capitalise on the individual company’s strengths and complement their strategies.

The Alliance Operating Board 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.

The Alliance statement says that the new framework to leverage member-company strengths aims “to reinforce the collaboration models to fully leverage the strengths within each company to enhance our leadership across regions, products, and new technologies.”

As per the new business model, the Alliance Operating Board has decided the following:
–  On regions, each of the three companies will be the reference company for a dedicated region: Nissan for China, Renault for Europe, Mitsubishi for southeast Asia.
– 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.
– The AOB also decided to pool the three companies CAFE credit in Europe as early as 2020.
– 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.
– 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 the use of resources and investments within the three companies.

Evolution of Alliance governance
The Alliance Operating Board, which consists one chairperson and the chairperson or chief executive officer of each member company, have 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,” concludes the statement.