Renault-Nissan-Mitsubishi Alliance: Progress of the Mid-Term Plan (Part 2)
Renault's reorganization plan, and its growth strategy centered on electrification
2020/10/01
- Summary
- Renault's transformation plan: Over EUR 2 billion in fixed cost savings and 15,000 job cuts
- Announced plan to reorganize into four business units based on brands
- Advocating to be a leader in electrification in Europe and further strengthening by adding hybrids
- Brilliance Renault's new research and development center is up and running
- Sales volume down 34.9% in the first half of 2020; final loss of EUR 7.29 billion
- Production Forecast by LMC Automotive: Renault-Nissan-Mitsubishi’s global production in 2023 will be 9,849k units
Summary
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.
Renault announced its transformation plan on May 29, 2020, laying out a plan to improve efficiency and profitability, including cost reductions of more than EUR 2 billion over three years. In line with this, Renault is proceeding with negotiations to close its main plant, while actively working towards growth with electrification, which it regards as its strongest area of expertise, as a driving force. In early September, Renault announced its plan to restructure its organization around its brands.
However, the financial results of the three alliance companies reported in the most recent period (Nissan and Mitsubishi in the first quarter of fiscal 2020, and Renault in the first half of fiscal 2020) all showed significant losses. As a result, close attention will be paid to the implementation of the measures outlined in the Alliance’s plan in the current challenging business environment.
In this Part 2 of our coverage on the materialization of the three automakers' plans following the announcement of the R-N-M Alliance mid-term plan (from May 28, 2020), we will report on the latest developments based on press releases and news related to the Renault Group. At the end of this report is included LMC Automotive's medium-term production forecast for the three companies of the Alliance.
For more information on the activities of Nissan and Mitsubishi, please refer to the Renault-Nissan-Mitsubishi Alliance: Progress of the Mid-Term Plan (Part 1) .
Related reports:
Renault-Nissan-Mitsubishi Alliance: Progress of the Mid-Term Plan (Part 1) (Sep. 2020)
Nissan: Structural reform through "business rationalization" and "prioritization and focus" (Jun. 2020)
Electric Cars with 48-V Powertrains (Jun. 2020)
European OEM Electrification Strategies, Including EV Product Timelines (Nov. 2019)
28th Aachen Colloquium - Automobile and Engine Technology (Oct. 2019)
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