Renault-Nissan-Mitsubishi Alliance was initially known as Renault-Nissan Alliance. In 1999, French Carmaker Renault and Japanese automobile manufacturer Nissan sealed an agreement. Renault took 36.8% of Nissan’s capital. The primary purpose of this Alliance is to work together to provide better scale and efficiencies to better compete with the rest of the market. Later on, in 2016, Mitsubishi joined the Alliance. The three automobile companies sell more than 1 in 9 vehicles around the globe.
Renault and Nissan have 450,000 employees. Today, the Group operates worldwide with five other brands: Dacia, Samsung, Alpine, L.A.D.A., and Mitsubishi. Renault-Nissan-Mitsubishi has over 120 manufacturing plants spread across different countries. They have outreached to more companies to expand their business and spread the network. They have strategic partnerships with the likes of the Mercedes – Benz pickup trucks and compact cars. Dongfeng in China is another company.
How did this Alliance start?
This auto-making Alliance was formed on 27th March 1999, and Carlos Ghosn was the manager of the Renault-Nissan alliance. This Alliance is the first of its kind involving Japanese and French companies. These two companies decided to make this Alliance in which Renault would take for granted $5.4 billion of Nissan’s Debt in return for a 36.6% equity share in the Japanese company.
Later, in 2016, Mitsubishi joined this Alliance as Nissan began the acquisition of a 34% stake in Mitsubishi Motors. Nissan said that they plan to share some car platforms with Mitsubishi motors. In October 2016, when this acquisition was completed, Carlos Ghosn became Mitsubishi’s chairman.
Renault-Nissan-Mitsubishi alliance’s 2022 Plans
In September 2017, the Alliance announced its six-year plan, “Alliance M.O.V.E. 2022”. In this plan, they had set combined targets for Renault, Nissan, and Mitsubishi. They had a plan to achieve the ongoing target of annual synergies of 10 billion euros. The Alliance sold more than 10 million vehicles globally, making it one of the world’s biggest automakers. Similarly, Ghosn decided to step down from the post of C.E.O. of Nissan in April.
Arrest Of Ghosn
In 2018, Ghosn was arrested in Japan. The charges put on him were that he was using Nissan funds for personal use and doing other crimes. The main he did was, he was underreporting his salary for ten plus years. He was arrested and fired from the Alliance. Jean-Dominique Senard was appointed as the new chairman of the Alliance.
At a conference, Senard said, “For 22 years, we have been building on our respective cultures and strengths for our common benefit. Today the Alliance is accelerating the pace to lead the mobility revolution and deliver more value to customers, our people, our shareholders, and all our stakeholders.”
The Alliance confirms plans to build 35 new E.V.s by 2030. They will be spending $25.8 billion to make 35 E.V.s by 2030. The Alliance will be developing five new platforms for E.V.s. Nissan is one of the first cars based on one of those platforms for their electric car Micra. The Alliance is focusing on pure E.V.s and intelligent and connected mobility. The Alliance also stated that it will have 25 million vehicles connected to its cloud system by 2026, allowing Tesla-like over-the-air updates.