Alliance convergence continues apace

Renault-Nissan-Mitsubishi has announced the launch of multiple projects to accelerate convergence in key operational areas.

These include engineering, manufacturing, purchasing, quality and total customer satisfaction (TCS), aftersales and business development at the world’s largest automotive alliance.

The initiative follows the announcement in September 2017 of the Alliance 2022 mid-term plan targeting increased annual synergies of more than €10bn by the end of the plan, up from €5bn in 2016.

Additionally, the Alliance member companies are forecasting sales of 14 million units by the end of the plan, compared to 10.6 million units in 2017.

Carlos Ghosn, chairman and chief executive officer of the Alliance, said, ‘We are accelerating convergence to support our member companies with rising synergies. The Alliance will turbo-charge the performance and growth of its member companies, while preserving the autonomy and distinct strategies of Renault, Nissan and Mitsubishi Motors.’

Alliance project leaders have been appointed to identify new synergies and reinforce convergence. They will focus on optimising revenues and global spending, maximizing areas of commonality; sharing technologies and resources, and simplifying decision-making processes to accelerate growth.

Upon conclusion of the projects, it is expected that Mitsubishi Motors will join the Alliance purchasing, business development, quality and TCS organisations in April 2018. Mitsubishi will then gradually move towards full participation in engineering, manufacturing and SCM and aftersales starting in 2019.

Carlos said, ‘I am confident that these projects to strengthen and accelerate convergence in key functions will sustainably boost the growth and profitability of our member companies. With Alliance 2022 we will grow with three companies, or more, performing increasingly as one.’