Business changes at Renault, Nissan and Mitsubishi Detail Alliance

Business changes at Renault, Nissan and Mitsubishi Detail Alliance

Nissan will be the North American leader, Renault in Europe.

The Renault-Nissan-Mitsubishi alliance was shocked last year when former Nissan boss Carlos Ghosn left Japan and arrived in Lebanon on a private jet coming from Turkey on December 30 to escape Japan’s “rigged” system of justice. The coronavirus pandemic put the French automaker at the edge of the rocks, forcing it to consider removing a number of its models. The alliance has finally announced a new business strategy to help it weather the current economic crisis.

Business changes at Renault, Nissan and Mitsubishi Detail Alliance

The alliance released a long press release earlier today. We were most interested in the “leader-follower” vehicle scheme principles. It states that each segment will have a “mother” model, which includes sister vehicles, designed by the “leading” company and supported by the “followers” teams. This new model will result in a reduction of vehicle development investment by up to 40%.

A new strategy would see every company in the alliance line-up focusing on one or more core regions of the globe. This will allow them to be “amongst the most competitive” and help others improve their competitiveness.

Business changes at Renault, Nissan and Mitsubishi Detail Alliance

These new roles will see Nissan take charge of the renewal of the compact SUV segment after 2025. Renault will handle the subcompact SUV segment. According to the alliance, close to half of its models will be produced and developed under the leader-follower program by 2025.

“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,” commented Jean-Dominique Senard, chairman of the Renault-Nissan-Mitsubishi alliance. “The Alliance will be able to make the best of each company’s strengths and perform capabilities while also building upon their respective cultures and legacies.