A new strategy shows that The Alliance is committed to improving competition
Four years ago, Renault, Nissan, and Mitsubishi became part of a singular automaker company known as The Alliance. As a result of their pooled resources and assets being consolidated under one umbrella, the Alliance became the third-largest automaker in the world, at the time at least. As we reported earlier this month, this joint venture has started to show the beginnings of a bright future. The upcoming 2021 iteration of the Mitsubishi Outlander will now share major components, including its engine, with the Nissan Rogue. Now, new information has been released by the automaker, and it seems that rapid progress is being made. Jean-Dominique Senard is chairman of operating the board at the alliance and detailed some new developments in a press release. A lot of typical jargon is scattered everywhere, but we've broken down the most important details.
Naturally, each of the three companies in the alliance has its own specialities. For example, you can't imagine a Renault truck or a Mitsubishi GT-R (well, sure you can, but each is as unlikely as the other). These parts of each respective company will remain unchanged, but in segments where all three brands have a competing model, a "leader" company will develop the vehicle that they are the best at, with the other two "follower" companies basically copying the leader's homework. What does this mean? Well, the leader already has expertise in a certain area and will develop the next vehicle in that segment. The other two companies then benefit from the development process and each will produce its own version of a similar vehicle. This strategy is expected to reduce specific model investment costs by as much as 40 percent.
Starting in 2025, Nissan will spearhead development of new vehicles built for the C-SUV segment in Europe, with Renault taking charge in the B-SUV segment. In Latin America, model ranges will be trimmed down from four variants to one, with two production facilities serving both Renault and Nissan. Finally, in Southeast Asia and Japan, the alliance will consider certain new-vehicle opportunities with Nissan and Mitsubishi handling new models. Nissan will also take the lead in autonomous driving tech and collaborate with Renault on connected services. Electric-electronic architecture will be handled by Renault solely, while the French brand will partner with Nissan for electric powertrain solutions and Mitsubishi will deal with PHEVs for the C and D segments.
The idea is that cars will be of better quality, will cost less to build, and will be ahead of what competitors can produce thanks to a diverse spread of experience and culture across the three brands. Whether this will lead to cheaper new-car pricing for the American customer is yet to be seen, but we are hopeful.