The Renault-Nissan-Mitsubishi Alliance is a French-Japanese strategic partnership between Renault car manufacturer, based in Paris, France, Nissan, based in Yokohama, Japan, and Mitsubishi Motors, based in Tokyo, Japan, which together sell more than 1 in 10 cars worldwide. Originally known as Renault-Nissan Alliance, Renault and Nissan became strategic partners in 1999, and had nearly 450,000 employees and controlled ten major brands: Renault, Nissan, Mitsubishi, Infiniti, Renault Samsung Motors, Dacia, Alpine, Datsun, Venucia, and Lada. The car group sold 8.3 million cars worldwide by 2013, behind Toyota, General Motors, and Volkswagen Group for total volume. The Alliance adopted its current name in September 2017, one year after Nissan acquired a controlling stake in Mitsubishi and later made Mitsubishi a partner aligned in the Alliance.
In January 2018, the Alliance is the world's leading plug-in electric vehicle manufacturer, with global sales since 2010 of more than 500,000 electric vehicles, including those manufactured by Mitsubishi, now part of the Alliance. The best-selling vehicle of the Alliance EV lineup is the Nissan Leaf multi-purpose car. The Leaf is also the world's largest-selling plug-in electric car in history, with more than 300,000 units sold worldwide until January 2018.
The strategic alliance partnership between Renault, Nissan and Mitsubishi is not a merger or acquisition. The three companies join together through a cross-sharing agreement. The structure was unique in the automotive industry during the 1990s consolidation trend and later became a model for General Motors and PSA Group, and Mitsubishi, as well as Volkswagen and Suzuki, although the latter combination failed. The alliance itself has expanded its coverage substantially, forming additional partnerships with automakers including Germany's Daimler, Dongfeng Motor China, and AvtoVAZ Russia.
Video Renault-Nissan-Mitsubishi Alliance
Company structure and strategy
The Alliance is a strategic partnership based on the reason that, because of substantial cross-ownership investments, each company acts in the interests of others' finances - while maintaining individual brand identity and independent corporate culture. Renault currently owns 43.4 percent of the voting rights in Nissan, and Nissan holds 15 percent (non-voting) shares in Renault effectively giving Renault control. Although more companies have adopted such an arrangement, it remains controversial. Some business journalists speculate that companies should join a conventional merger to make "bold" moves, while other stakeholders say the company should split up.
Carlos Ghosn is chairman and CEO of the Alliance. Ghosn is a Brazilian-Lebanese-French businessman who is also chairman and CEO of Nissan Motors and holds a similar position in Renault. Ghosn compares the Renault-Nissan partnership to marriage: "Couples do not assume a single converged identity when they marry, instead they maintain their own individuality and join to build a life together, united by common interests and goals, each bringing something different to unions.In business, regardless of industry, the most successful and lasting partnership is created by respecting identity as a constant guiding principle. "
Ghosn has consistently advocated an evolutionary approach that resulted in increased integration and synergy for partners in the Alliance. "You have to be careful that in the end, by trying to do more in the short term, you will not end up destroying what has resulted in so many results in the medium to long term," Ghosn was quoted as saying in Reuters March 2011 Special Report, where he says, conventional top-down acquisitions in the automotive industry in the last decade have failed. "It's not validated by any example in a successful car industry, not an example, and saying something different is just rubbish."
The goal of the Alliance is to increase the economies of scale for Renault and Nissan without forcing one company's identity to be consumed by others. Alliances reach scale and accelerate time to market by jointly developing engines, batteries, and other major components. For example, Nissan's market share increased in the competitive European light commercial vehicle segment has been partially the result of badging various models of Renault van such as Renault Kangoo/Nissan Kubistar, Renault Master/Nissan Interstar, Renault Trafic/Nissan Primastar. In addition, Renault built almost all diesel engines in Nissan cars sold in Europe. Nissan used this engine to accelerate sales across Europe, where it has become Asia's number one brand in many major markets.
The collaboration between Renault and Nissan also focuses on capital-intensive research projects such as sustainable transportation, zero-emissions and developing car manufacturing in emerging markets such as Brazil, Russia and India. The Alliance also oversees purchases for both companies, ensuring greater volume and thus better price with suppliers. Renault and Nissan also consolidate logistics operations under the Alliance to reduce costs. The Company claims that it generates more than EUR200 million per year by sharing warehouses, containers, shipping crates, marine sailing vessels and customs-related processing. In total, the Alliance reported more than EUR1.5 billion in synergy in 2010.
The Alliance develops "best practices," a system of borrowing and control of one company to strengthen another company if necessary. "Nissan Production Way" became the cornerstone of the "SystÃÆ'¨me de Production Renault" standard used by all Renault factories. Renault reported a 15 percent increase in productivity due to the new system.
Maps Renault-Nissan-Mitsubishi Alliance
History
The alliance began on 27 March 1999. At that time, the automotive industry was in a period of rapid consolidation. Many companies merged or acquired in high profile transactions, especially the acquisition of Daimler against Chrysler in 1998 (dissolved in 2007, when the companies were separated).
At the time it was made, Renault bought 36.8 percent of Nissan's extraordinary shares, and Nissan promised to buy to Renault when it was financially capable. In 2001, after the company's turnaround from bankruptcy, Nissan bought a 15 percent stake in Renault, which in turn increased its stake in Nissan to 44.4 percent.
In 2002, the Alliance created Renault-Nissan BV (RNBV), a strategic management company to oversee areas such as corporate governance between the two companies. Based in Amsterdam, it is owned 50/50 by Renault and Nissan and provides a neutral location for the Alliance to exchange ideas, build strategies and help leverage maximum synergies between the two companies.
In 2006, the Alliance started exploratory talks with General Motors about the possibility of creating an industrial alliance. The talks were triggered by GM minority shareholder Kirk Kerkorian. GM is reportedly demanding payment of several billion dollars to engage in the alliance, prompting Ghosn to call the term "contrary to the spirit of the alliance." The discussion ended without agreement in October 2006, when Ghosn said, "It's clear the two sides have completely different tastes for an alliance."
Since 2010, the Alliance has undertaken several projects as part of a strategic partnership with German company Daimler AG.
In 2014, Renault and Nissan combine research and development, manufacturing and business operations to improve money savings, integrate both companies and accelerate development.
In September 2017, the Alliance announced the 2022 Alliance, a six-year plan that has set a new target to double annual synergies up to EUR10 billion at the end of the plan. Carlos Ghosn says: "Today marks a new milestone for our member companies.At the end of our strategic plan, the 2022 Alliance, we aim to double our annual synergy to EUR10 billion.To achieve this target, on the one hand Renault, Nissan and Mitsubishi Motors will accelerating collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies. From the other side, the synergies will be enhanced by our growth scale. Our total annual sales are expected to exceed 14 million units, generating expected revenue of $ 240 billion by the end of the plan. "In addition to the announcement of the new plan, a new logo and new name Alliance have been launched.
Global sales
According to the Alliance, it sold one of nine cars worldwide by 2017, ranking as the world's largest light vehicle producer with sales, with 10,608,366 units sold. In 2017, the Renault-Nissan-Mitsubishi alliance recorded a 6.5% increase over 2016.
Project
The zero-emission vehicle
The Alliance is committed to EUR4 billion (approximately US $ 5.2 billion) into its vehicle and battery electric development programs in order to become a leader in zero emission transportation. Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance predicts that by 2020 one in 10 new car sales will become electric vehicles. The first electric car based on this investment is the Nissan Leaf, launched in December 2010 in the United States and Japan. Between 2011 and 2013, Renault unveiled four zero-emission electric vehicles (Z.E.) batteries (BEVs), Renault Kangoo Z.E. utility van, Renault Fluence Z.E., Renault Zoe, and Renault Twizy urban quadricycle. Zero-emissions do not refer to CO 2 emissions and no exhaust pollutants are set while driving, ie, no tailpipe pollutants. Nissan's all-electric vehicle, Nissan e-NV200, was released in Europe in June 2014, followed by Japan in October 2014. Nissan plans to launch two additional battery electric vehicles in March 2017. Initially, Carlos Ghosn predicts the two companies will sell a combined 1, 5 million electric cars by early 2016. Due to sales slower than expected, in 2013 the Alliance revised its sales target to 1.5 million electric vehicles by 2020.
In May 2008, as part of the Alliance's emissions reduction strategy, Nissan and NEC formed a joint venture, the Automotive Energy Supply Company (AESC) to focus on the development and mass production of advanced lithium-ion batteries for a wide range of automotive. applications from hybrids, electric vehicles to fuel cell vehicles. AESC started production in 2009 at its facility at Nissan Zama factory in Kanagawa Prefecture where its annual capacity is 65,000 units. Globally, Alliance's battery production capacity is expected to be 500,000 units per year by the end of 2013. Other Alliance battery production sites, announced in 2009, include France, Portugal, the UK and the US.
The Alliance has created partnerships with more than 100 public and private organizations to create consumer purchase incentives and EV infrastructure investments. The Alliance also partnered with Better Place. After applying the first modern commercial deployment of battery swapping models in Israel and Denmark, Better Place filed for bankruptcy in Israel in May 2013.
Combined sales of Renault and Nissan models reached a sales milestone of 400,000 electric vehicles shipped globally in January 2017. Groupe Renault's global electric vehicle sales passed the 100,000-unit milestone in September 2016, with Zoe sales representing 54%, Kangoo Z.E. with 24%, Twizy with 18% and Fluence Z.E. and its Korean variant, Samsung SM3 Z.E., together represent 4%. Nissan's global electric vehicle sales passed 275,000 units in December 2016. The alliance, including the Mitsubishi Motors i-MiEV family, sold 94,265 electric vehicles in 2016, up more than 8% from 2015. At the end of December 2017, the Alliance continued as a leading electric vehicle manufacturer with global sales of more than 500,000 electric vehicles, including those produced by Mitsubishi Motors, now part of the Alliance.
In January 2018, Nissan Leaf is the world's top-selling electric car, with global sales of more than 300,000 units since its introduction in December 2010. Leaf is the world's best-selling plug-in. electric cars for two consecutive years, 2013 and 2014. In December 2016, Renault sales were led by Renault Zoe with 61,205 units sold worldwide, followed by Kangoo ZE electric utility vans with 25,205 units, and Twizy's heavy quadricycle with 19,342 units. The Zoe has been Europe's best-selling electric car for two consecutive years, with 18,453 registrations by 2015, and with 21,735 units shipped in 2016. Also, Zoe occupied European sales in the wider plug-in electric car segment, in front of Mitsubishi Outlander P-HEV, the best-selling plug-in car of the previous two years.
Daimler's Strategic Cooperation
The Alliance announced on April 7, 2010, a broad strategic partnership with Daimler, reportedly worth EUR2 billion over five years. The companies joined the equity swap that gave the Renault-Nissan Alliance 3.1% stake in Daimler and Daimler combined 3.1% in Renault and Nissan.
Soon after the announcement, Renault and Daimler began to work together in combining the next generation of small cars: Renault Twingo and Smart Fortwo, including electric versions as well as expanding both ranges of models. The launch of a jointly developed small car model is scheduled to begin in 2013.
The smart factory in Hambach, France, will be the production site for the two-seater version, while Renault's plant in Novo Mesto in Slovenia will be the production site for the four-seater version. Future models will also be available with an electric drive from the launch. Powertrain sharing will focus on diesel engines, gasoline and fuel efficient. The Alliance will provide 3 and 4-cylinder petrol and diesel engines for Daimler.
The companies have agreed to share powertrain and development work on future projects in both passenger cars and light commercial vehicles. The deal will allow powertrain sharing between Infiniti and Mercedes-Benz vehicles, and regional cooperation in the United States, China, and Japan between Nissan, Infiniti, and Daimler. Daimler will reportedly provide 4 and 6 cylinder petrol and diesel engines for Infiniti.
In January 2012, the company announced that it will jointly produce engines at its Nissan plant in Decherd, Tennessee. This collaboration marks the first production of Mercedes-Benz engines in the North American Free Trade Area. The location and logistics connections of the Tennessee factory ensure direct engine supplies starting in 2014 for the Mercedes-Benz C-Class, built at Daimler's vehicle plant in Tuscaloosa, Ala. The deal marks the first time Daimler has built a machine in North America. The companies will jointly produce 250,000 four-cylinder gasoline engines at the plant.
In January 2013, Renault-Nissan, Daimler and its third partner, Ford Motor Co., announced a three-way development of "affordable, mass-market" hydrogen fuel cell vehicles by 2017. The companies said they would invest the same amount into in an attempt. By collaborating on fuel cell stacks and other system components, Ford, Daimler and Renault-Nissan hope to improve technology and produce on a large scale. With higher production volumes, these automakers hope to produce economies of scale and offer more affordable cars.
In June 2014, the Alliance and Daimler AG announced they will jointly develop a premium compact vehicle, and jointly manufacture them in Aguascalientes, Mexico, where Nissan already has an existing manufacturing complex. This arrangement is a 50:50 joint venture, and the new plant will have an annual capacity of 300,000 vehicles. Enterprises $ 1.36 Ã, billion will produce Infiniti models in 2017, and Mercedes-Benz compacts in the next year.
AS
While Nissan is a major player in the United States and Mitsubishi also has a presence, Renault has not sold cars in the country since its sale from American Motors to Chrysler in 1987. In addition to its mostly Tennessee-based manufacturing base in Tennessee, the Alliance operates the Silicon Valley Research Center at Sunnyvale, California, specializing in autonomous driving and connected cars. The office works with Silicon Valley technology-based companies and collaborates with technical centers of Renault and Nissan in France and Japan. Areas of study include: autonomous vehicles; Vehicles connected to the Internet; and the human machine interface field.
Brazil
In October 2011, the Renault-Nissan Alliance launched a $ 1.8 billion "Brazil attack" with two plants and an annual combined capacity of 580,000 vehicles per year.
Nissan invested 2.6 billion Brazilian reais (US $ 1.5 billion or EUR1.1 billion) to build a new manufacturing facility and develop, industrialize and launch new products in Resende, Rio de Janeiro. The new Nissan plant, which starts production in the first half of 2014, has the capacity to produce up to 200,000 units annually and will create up to 2,000 jobs directly related to the plant.
Renault invested 500 million additional reins (US $ 285 million or EUR212 million) to expand the existing plant at SÃÆ'Â £ o JosÃÆ'Â Â dos Pinhais. The expanded plant will have an annual capacity of 380,000 vehicles per year starting in 2013. During the product cycle covering 2010-2015, Renault is investing 1 billion additional Brazilian reais (US $ 571 million, or EUR423 million) to cover development, industrialization and launch of vehicles new for Brazilian consumers.
The purchases for Renault and Nissan in Brazil operate through the Renault-Nissan joint Purchasing Organization, which works with suppliers throughout Brazil to ensure that all parties maximize economies of scale. In addition to purchasing, the company also works closely with supply chain management and manufacturing problems.
Russian
On December 12, 2012, the Renault-Nissan Alliance became the long-term controlling shareholder of AvtoVAZ, Russia's largest car company and owner of the country's biggest selling brand, Lada. Under the terms of the deal, Renault-Nissan invests 23? billion (US $ 742 million) for 67.13% of the joint venture in mid-2014. As part of the deal, Renault-Nissan Chairman and CEO Carlos Ghosn will become chairman of the board of the joint venture, called Alliance Rostec Auto BV. The aim of the Alliance's market share in Russia is to expand from 33 to 40% by 2015 with AvtoVAZ.
With AvtoVAZ, the Renault-Nissan Alliance builds Renault, Nissan, and Lada models at its plant in Togliatti, inaugurated by Russian Prime Minister Vladimir Putin in April 2012. The assembly line has a maximum capacity of 350,000 cars per year. The Alliance also has factories in Moscow, St. Petersburg, and Izhevsk. With Togliatti and planned improvements at other manufacturing complexes, Renault-Nissan and AVTOVAZ will have Russia's capacity of at least 1.7 million cars per year starting in 2016. Investments in Russia began in February 2008, when Renault acquired a 25% share in AVTOVAZ.
On September 18, 2013, the Alliance and AvtoVAZ announced the formation of a joint-buying company, "Public Purchasing Organization". It is also owned by Alliance's RNPO and Russian manufacturer.
India
In July 2013, Renault-Nissan CEO Carlos Ghosn confirmed the development of new car platforms in India to meet demand for new car buyers in the fastest growing economies in the world. The platform, code called CMF-A (Common Module Family - Affordable), is being designed and engineered in India, and it is the first new vehicle platform designed jointly from the bottom by both Renault and Nissan teams. The first cars on the platform will be launched in 2015.
The CMF-A car will come from the factory and technical center of the Renault-Nissan Alliance in Chennai, which opened in 2010. The first vehicle produced was Nissan Micra. Starting in 2011, the factory began to build Renault Koleos and Fluence. The plant is located in the Oragadam Development Scheme and represents an investment of approximately EUR800 million over seven years from February 2008 to 2015. The factory - which has a stamping shop, body, paint, plastic, trim, and chassis complete with two test lines - - will have the capacity to producing 400,000 vehicles per year with full increase.
The plant can produce four separate platforms and eight body styles in a random production sequence. Both sub-assemblies and spare parts supply to the channel are completely flexible. The efficiency is enhanced by having bumper and plastic molds manufactured on the site while the assembly line offers a very efficient logistics layout with a 100% supply kit system to the lineide that saves operators having to take part from more than one place reducing the need to walk to collect parts. This is the development of what Nissan did at Oppama, Japan and Sunderland, England. The Renault team supports the development of powertrain, vehicle engineering, information systems, as well as styling and project support exclusively for design studios based on Renault Mumbai.
China
Nissan has a joint venture with Dongfeng Motor Company China to produce and sell cars across China. In 2011, Nissan sold 1.24 million vehicles in China, making China's top Nissan market worldwide and making Nissan Asia's top automaker in China. Executives at Dongfeng say the reason they chose Nissan is because of its successful corporate integration with Renault's strategic partner, allowing each entity to remain independent and brand-focused but to benefit from economies of scale.
Renault plans to enter the Chinese market with Dong Feng as well, signing a memorandum of understanding in April 2012. Renault anticipates the launch of vehicle production in China by 2016. The start of Renault's production in China will complete the so-called "golden triangle" between Renault, Nissan and Dongfeng envisioned when the parties signed the first agreement in 2000.
Directly through the Alliance, Renault entered the world's largest auto market in 2009, introducing brands through imported cars including Laguna III, Koleos SUV and multi-purpose Scenic van. In February 2011, the Alliance inaugurated the China Warehouse in Shanghai, further building a partnership between Renault, Nissan, and Dong Feng. The 8,000 square meter complex will provide a variety of auto parts, including 3,000 Renault and 10,000 Nissan spare parts covering almost all models imported in China. It will also develop "best practices" for system optimization and sharing of technical platforms.
Korean
In July 2012, the Renault-Nissan Alliance announced it had invested 170 billion won (US $ 160 million) in Renault Samsung Motors, a South Korean company purchased by Renault in 2000. The new investment adds the ability to produce up to 80,000 Nissan Rogue sport utility vehicles crossover per year at Renault's Samsung Motors plant in Busan, taking advantage of Korea's free trade agreement with the United States and the European Union, as well as a favorable currency exchange. The Busan factory already produces Renault Samsung SM3, SM5, SM6 and SM7 sedan, as well as QM5 crossover. Parts of the production are exported to other markets, under the name Renault Koleos. Production of Nissan Rogue begins in September 2014.
Morocco
King Mohammed VI inaugurated the new Renault-Nissan Alliance plant in Tangier, Morocco, at a special ceremony attended by Carlos Ghosn, Chairman of Renault and Nissan. The new Renault-Nissan plant in Tangier represents an investment of EUR1 billion with an annual production capacity of 400,000 vehicles with an estimated total staff of over 6,000 by 2015.
In 2007, the Alliance announced an investment of EUR600 million to build the Tangiers Industrial Project. Production of vehicles based on Dacia Logan platform will begin in 2012 with one production line and an initial annual production capacity of 170,000 vehicles. The Alliance says capacity will increase to 400,000 vehicles per year, but it has not set a deadline. The development of Tangiers is one of the largest manufacturing complexes in the Mediterranean.
References
External links
- Official website
Source of the article : Wikipedia
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