Renault-Nissan-Mitsubishi Alliance: Progress of the Mid-Term Plan (Part 1)
Nissan and Mitsubishi seek to strengthen their brands with new products
The Renault-Nissan-Mitsubishi Alliance (R-N-M Alliance) announced its alliance policy on May 27. In line with this, the automakers announced their mid-term business plans and have been advancing specific measures to improve their business structure and strengthen their brands.
The alliance policy makes clear the role of each company in terms of “leaders and followers” for products, technology developments, and markets, and sets forth the Alliance’s basic policy of aiming for further synergies to increase the benefits of forming the Alliance.
|Nissan Ariya (Source: Nissan)|
On May 28, the day following the alliance policy announcement, Nissan announced its new Nissan-Next structural reformation plan. In line with the new plan, Nissan announced its new innovative products such as the new Ariya EV ahead of schedule, as well as its plans to review its production system to be more in line with Alliance policy, actively promoting the progress of its structural reform.
On August 5th, Mitsubishi Motors announced its new mid-term plan, and the manufacturer is implementing a production system focusing on the ASEAN region, strengthening its product lineup, and promoting electrification.
In early June, Renault announced its transformation plan which centers around structural reorganization and cost reduction. At the same time, it also launched various measures that represent its policy of strengthening its areas of expertise such as electrification.
However, all of the recent results reported since (Nissan and Mitsubishi in Q1 of FY 2020, Renault in the first half) indicate major losses. Nissan and Mitsubishi have announced extremely unfavorable figures including restructuring costs for their FY 2020 forecasts (Renault postponed the announcement of its forecast), and the measures announced in the alliance policy will be of great focus amidst a difficult business environment.
Part 1 of this report on the three alliance members’ plans to implement their policies announced in their mid-term policy announcement (from May 28th, 2020) will focus on Nissan and Mitsubishi’s latest developments based on announcements and related news. Part 2 will cover Renault as well as an alliance production forecast by LMC Automotive.
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