Tokyo - The Renault-Nissan alliance announced on Wednesday that it plans to share more vehicle parts, technologies and models to help drive down costs as the industry struggles to survive the coronavirus pandemic.
Alliance Operating Board Chairman Jean-Dominique Senard said the alliance, which also includes Mitsubishi Motors, will have each company focusing on specific geographic regions.
He stressed that the alliance needs to adjust to the “unprecedented economic crisis,” to pursue efficiency and competitiveness, not sheer sales volumes.
“Now is the time to rebuild,” Senard said, making clear that he believed the alliance remained strong.
All carmakers are suffering from the pandemic, and scaling back or suspending production, but Nissan was reeling before the crisis struck, from a scandal involving its former chairman Carlos Ghosn.
Nissan is due to report its annual results on Thursday and has forecast it will slip into its first yearly loss in 11 years.
Three brands to focus on different regions
Under the latest initiative, Nissan will focus on China, North America and Japan; Renault on Europe, Russia and South America and North Africa, and Mitsubishi on Southeast Asia and Oceania, for the benefit of the entire alliance.
Nissan Chief Executive Makoto Uchida said the alliance planned to pursue fiscal strength together.
“The synergy is huge,” he said.
Vehicles sharing the same platform will double by 2024, saving 2 billion euros (R38.2bn), according to Senard.
The shared technology will also include electric cars and autonomous driving, platforms and car bodies, the executives said. Nissan is a leader in electric cars with its Leaf, but such technology will be available to the other alliance members, the company said.
Renault owns 43% of Nissan, while Nissan owns 15% of Renault. The government of France owns 15% of Renault.
France’s government recently announced a bailout of more than 8 billion euros (R152.8bn) for the nation’s motor industry. A 5-billion-euro French government loan guarantee is under discussion for Renault. The measures include subsidies to encourage people to buy low-emissions models.
Analysts say carmakers, including Nissan, need to slash costs.
“Car companies find themselves in extraordinary times right now due to the Covid-19 crisis and the impact of lockdowns and economic recession on sales. A key theme emerging in companies’ response to the crisis is the need to focus on core and profitable activities,” said David Leggett of analytics company GlobaData.
Nissan's brand suffered from the arrest of Ghosn in November 2018 on suspicion of various kinds of financial misconduct, including under-reporting promised compensation and misusing Nissan money.
Ghosn had been sent in by Renault in 1999, to save Nissan from the brink of bankruptcy. He insisted on his innocence from the start and accused some at Nissan of concocting allegations to block a merger with Renault.