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...
Most Expensive Mustang Ever? The $2.2 Million 1967 Shelby GT500 Super Snake

This makes the first production 2020 Super Snake, which sold for $1.1 million, look like a bargain.

Will Toyota Ever Launch A Convertible Supra To Combat The Z4?

According to chief engineer Tetsuya Tada, an open top Supra is something Toyota would consider .

One Brave Soul Decided To Acquire This Wrecked Corvette ZR1

This ZR1 is definitely beyond repair, yet someone stepped up to the challenge and became its new owner.

Could Genesis Be Working On A High-Performance G70 After All?

Will the BMW M3 and Mercedes-AMG C63 get a challenger from Korea? Well, stranger things have happened.

One-Of-One 2020 Toyota GR Supra Sells For Colossal $2.1 Million!

This 2020 Supra’s standout feature is the one-off, factory Phantom Grey matte paint.

New Kia Ceed Seems Like A Smart Choice In A Crowded Segment

Kia’s new compact hatch offers great value, good comfort and smart looks, but are they enough?.

2019 Skoda Superb Practically Undisguised As It Inches Closer To Debut

Steady but effective improvements are in the pipeline for Skoda’s range-topping model.

2019 Toyota Yaris Arrives In The UK With New Y20 And GR Sport Models

Toyota’s prolific supermini receives a boost in style and attitude, plus a limited version, for the new model year.

Cupra Ateca Is Very Fast And Well-Rounded, But It Lacks Character

As the first product of the newly founded performance brand it’s very good, yet not that exciting.

Here’s What It Costs To Maintain An Impressive 30-Vehicle Collection

Harry Metcalfe reveals just how expensive it was to own 16 cars and 14 motorcycles last year.