The French-Japanese automotive alliance between Renault, Nissan and Mitsubishi is undergoing a new shift to take the partnership to new heights.
The partners have proposed a three-dimension program to maximise value creation, which includes:
- High-value-creation operational projects in Latin America, India and Europe.
- Enhanced strategic agility with new initiatives that partners can join.
- A rebalanced Renault Group-Nissan cross-shareholding and reinforced Alliance governance.
The partners have entered into a binding framework agreement which is expected to reach definitive agreement by end of Q1 CY2023. This program they say paves the way for a renewal and strengthening of the 24-year partnership, creating a new agile spirit and harnessing the pioneering technologies of all three Alliance members.
This next level will create more growth opportunities and help secure operating efficiencies for each Alliance company to innovate and transform in the fast-changing market for automotive products and mobility services.
New key projects in Latin America, India and Europe
As per the understanding, the Alliance is looking to start new key projects in Latin America, India, and Europe which aims to deliver win-win, large-scale and actionable benefits.
In Latin America, the company is considering four projects, which include – a new half-tonne pick-up developed by Renault Group and shared with Nissan in Argentina. The successful collaboration on the Nissan Frontier/Renault Alaskan family, a 1-tonne pick-up, would continue. Renault Group would produce the pick-ups in Cordoba (Argentina) for both Renault and Nissan. In Mexico, Nissan would produce a new model for Renault Group, making it the first Renault vehicle to be produced there in 20 years. Lastly, Nissan and Renault Group would commercialise two common accessible A-segment electric vehicles, both based on the CMF-AEV (Common Module Family) platform.
For India, the partners will collaborate on several new vehicle projects including new SUVs shared by both Renault Group and Nissan, and a new Nissan car model derived from the Renault Triber SUV. Exports will also play a key role. The partners are also considering common A-segment EVs.
In Europe, Renault Group and Mitsubishi Motors will leverage assets of Renault Capture and Clio to develop 2 new vehicles with the next-gen ASX and Colt based on the CMF-B platform.
Renault Group will also launch FlexEVan for the LCV segment, as its first software-defined vehicle from 2026 and share it with Nissan in Europe. Beyond 2026, Nissan and Reault Group will also explore possible collaborations on the next-gen of C-segment EVs. The partners will also share technologies, including potential use of common 800-volt architecture. These initiatives will build on the existing commitments including plans for the future Nissan compact electric vehicle (B-segment), based on CMF-BEV platform, to be produced at Renault Group’s ElectriCity facility in France from 2026.
Looking beyond vehicles
The Alliance aims to enhance the partnership and look beyond just sharing and developing vehicle platforms. In Europe, the collaboration will also look at the vehicle lifecycle right from distribution to usage to recycling and end-of-life.
The partners will work on shared opportunities within the distribution network to support and increase dealer profitability and reduce costs. This will be done by increasing shared outlets in key markets. They will also develop common strategies for used car, aftersales and sales financing by leveraging the strong presence of Mobilize Financial Services in Europe.
Consideration for jointly deploying charging infrastructure in Europe at both Renault Group and Nissan dealerships. They will also work to select common battery recycling partners for end-of-life batteries and production scraps.
Supporting partner initiatives
As part of the enhanced cooperation, all three Alliance companies will explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.
These agile strategic initiatives are designed to complement the business plans of member companies, including Nissan Ambition 2030 and Renaulution, as each business leverages commonality and investment opportunities to deliver on their respective goals for sustainable growth and targets for decarbonisation.
The areas of collaboration under consideration include:
- Nissan’s intention is to invest up to 15% in Ampere, Renault Group’s EV & Software entity in Europe, with the aim to become a strategic investor. Through this intended investment in Ampere Nissan would enhance and accelerate new business opportunities for Nissan in Europe.
- Mitsubishi Motors would consider investing in Ampere.
- Nissan and Mitsubishi Motors would become customers of Renault Group’s Horse project, an initiative to achieve further scale and market coverage for its low-emission internal combustion engine (ICE) and hybrid powertrain technologies.
These initiatives would complement ongoing areas of technology collaborations such as All Solid-State Battery (ASSB), Software-Defined Vehicle (SDV), Advanced Driver Assistance Systems (ADAS) and autonomous driving.
Rebalancing cross-shareholding and reinforced Alliance governance
As each Alliance member company delivers on its business plans, the partners say it was important to put in place a cross-shareholding structure and governance terms aligned to the goals of the next-generation Alliance.
Whilst previous Alliance agreements enabled the companies to execute their respective strategies over the last 24 years, a new approach is required to enable the Alliance members to best prepare for future industry opportunities.
Renault Group and Nissan, the founding-members of the Alliance, have therefore agreed to rebalancing their cross-shareholding and governance terms to ensure effectiveness and maximise value creation.
A binding framework agreement defines the principles of a new governance scheme and the rebalancing of the cross-shareholdings between Renault Group and Nissan. The two companies intend to enter into a new Alliance agreement by March 31, 2023 and replace the current agreements governing the Alliance (i.e., the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement and the Memorandum of Understanding of March 12, 2019).
This new Alliance agreement would be put in place for an initial period of 15 years.
