The three carmakers revealed in a statement today that the Renault-Nissan alliance and Mitsubishi Motors Corp are planning a broad cooperation that includes sharing products, technologies, and production capacity.
Japanese automakers Nissan and Mitsubishi will expand an existing deal to produce Kei small cars for the internal market to also develop overseas models, while Mitsubishi is ready to introduce two sedans based on Renault models, the three companies said in a statement today. There was no time frame provided for the new strategy.
Carlos Ghosn, chief executive officer of both French carmaker Renault SA and Yokohama-based Nissan Motor Co., is mulling 4 billion euros ($5.4 billion) in cost savings for the alliance by 2016 to boost profitability.
The alliance is also increasing production in Russia with local carmaker OAO AvtoVAZ and it’s also partnering with Daimler on the German manufacturer’s Smart city cars, Mercedes-Benz delivery vans and engines.
Renault and Nissan “are doing the right thing by trying to expand their collaboration further and by involving other original-equipment manufacturers into the project more deeply” said Erich Hauser, a London-based analyst with International Strategy & Investment Group. “We should see marginal benefits from the greater volume leverage,” though Mitsubishi’s small size in the global industry will limit its role.
Cooperation with Mitsubishi will be limited to manufacturing rather than any stake investment, Ghosn said in an interview. The three manufacturers plan to “explore several new projects covering shared products, technologies and manufacturing capacity,” they said. “Strategic cooperation between Nissan and Mitsubishi could be expanded across the broader Renault-Nissan alliance,” and the carmakers also aim to share technology for electric autos.