The years following this one will be pretty busy for the Renault-Nissan-Mitsubishi Alliance, as it plans to implement a new business model that will almost completely change how the three carmakers produce vehicles.
The new business model is built on a leader-follower scheme, wherein Renault, Nissan, and Mitsubishi will each become references for regions wherein they possess key strengths. Leaders of a particular region will then focus on one ‘mother vehicle’ or leader car per product segment with the support of the followers’ teams. This will be supplemented by other sister vehicles that are also built by the lead company in that respective region.
Breaking it down, Nissan will be the reference for China, North America, and Japan, while Renault is for Europe, Russia, South America, and North Africa. Mitsubishi Motors, on the other hand, will be the reference for the ASEAN and Oceania regions.
Through this leader-follower scheme, the Alliance aims to produce vehicles using the most competitive setup possible, all while leveraging on each company’s assets to maximize fixed cost-sharing. The Alliance estimates that by 2025, close to 50% of all its models will be developed under this new business model.
The three companies will also be sharing platforms and powertrains under this new scheme, similar to what was done with the Renault Clio and Nissan Juke B-segment cars, as well as the Nissan Dayz and Mitsubishi eK Wagon kei cars. In addition, each company will take the lead in developing key technologies within their areas of expertise. The leadership is assigned as follows:
- Autonomous driving: Nissan
- Connected-car technologies: Renault to lead Android-based platform and Nissan in China
- E-body, the core system of the electric-electronic architecture: Renault
- e-PowerTrain (ePT): CMF-A/B ePT - Renault; CMF-EV ePT – Nissan
- PHEV for C/D segment: Mitsubishi Motors
“The Alliance is a unique strategic and operational partnership in the automotive world and gives us a strong edge in the ever-changing global automotive landscape,” said Alliance Operating Board and Renault chairman Jean-Dominique Senard. “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.”
You may recall that Nissan recently announced its four-year plan to bounce back from its losses. In this plan, Nissan revealed that it is looking to utilize the Mitsubishi Motors Philippines plant to produce its vehicles in the country—that’s basically the entire idea behind this new leader-follower scheme.
The Alliance, however, has yet to disclose more information on how exactly the companies’ product portfolios in different markets will be affected—it only said that these will follow the leader-follower scheme.
This should be interesting.
