The Renault-Nissan-Mitsubishi Alliance Saved $6.6 Billion Last Year Just By Cooperating

Synergy is the buzzword of the day. But it’s not just a vapid term. It can amount to serious savings, boosting very real profits for the companies involved. Just look at the Renault-Nissan-Mitsubishi Alliance.

The largest of its kind in the industry, the Alliance saved €5.7 billion over the course of last year by cooperating between them. That works out to over $6.6 billion. (That’s right, “billion,” with a capital B.)

The Alliance includes not only the Renault, Nissan, and Mitsubishi brands, but several others under their respective umbrellas as well – including Infiniti, Datsun, Dacia, Alpine, Renault-Samsung, and AvtoVAZ. The participating automakers cooperate in a wide array of means, not the least of them being joint development of new platforms, components, and technologies. In addition to R&D, they also share combined purchasing power, financial operations, even logistics.

“The Alliance has a direct, positive impact on the growth and profit of each member company,” said chairman Carlos Ghosn. “In 2017, the Alliance turbo-charged the performance of all three companies including Mitsubishi Motors which saw its first full-year of synergy gains.”

2017 represented the first full year of Mitsubishi’s integration into the Alliance, helping the group increase cost savings from synergy by 14 percent (from €5b/$5.8b) compared to 2016. What’s more is that Carlos Ghosn and company plan to increase the Alliance’s synergies to over €10 billion ($11.6 billion) by the end of 2022, by which point the allied automakers target producing over 14 million vehicles between them. Last year, they sold over 10.6 billion units – which is (slightly) more than the 10.5 and 10.3 that Toyota and Volkswagen sold, respectively, over the course of the same calendar year.

In other words, if the Renault-Nissan Mitsubishi Alliance were one automotive group, it’d be the largest in the world. And it could very well complete a merger into one entity in the near future, if Ghosn has his way.

more photos...
Tesla Model S Prototype Allegedly Demolishes Porsche Taycan’s ‘Ring Lap Record

The fastest lap timed manually by a witness was 7m23s, making the Model S prototype 20 seconds quicker than the Taycan.

Ford Could Build More Than One MEB-Based EV In Europe

Ford is interested in building multiple electric vehicles based on the VW Group’s electric vehicle platform.

Audi’s Deadline For Removing All Illegal Diesel Software Is This Month

Audi will face penalties if it fails to remove illegal software from diesel cars by September 26.

2020 DS 8 Flagship Starts Testing In Europe Ahead Of Launch Next Year

The EMP2-based DS 8 will be built in China and will first launch there before possibly arriving in Europe.

BMW Wants To Kill Off i3 EV Hatch In Favor Of Other Models

BMW’s focus going forward will reportedly be on PHEV derivatives of current models as well as all-electric new models.

Honda Wants To Sell At Least 10,000 e EVs Annually In Europe

A successful Honda e will allow the carmaker to achieve the EU’s fleet average of 95 g/km CO2 and avoid paying costly fines over emission targets.

2021 VW ID.4 Compact Electric Crossover Spotted Testing Alongside ID.3 Hatch

The ID.4 will go on sale in the United States next spring, with deliveries scheduled to commence in late 2020.

GM And UAW Resume Negotiations As Workers Continue Their Strike

The strike could cost the company $50 million daily in lost production alone, according to analysts’ estimates.

Mazda Will Unveil New EV Prototype At Tokyo Motor Show

The electric vehicle will be available for test drives disguised as a Mazda CX-30, but will have a new EV platform underneath.

Mercedes-Maybach SUV To Launch In November With Its Own Special Scent

Unlike 2018’s Ultimate Luxury Concept, the production version will look similar to the GLS, albeit with some distinctive changes inside and out.