Renault-Nissan-Mitsubishi increase annual synergies to €5.7 billion
The latest synergies reflect the economies of scale realized by the Alliance members, which reported total sales of more than 10.6 million vehicles for 2017 - becoming the world's largest automotive group in terms of sales of passenger cars and light commercial vehicles (LCVs).
"The Alliance has a direct, positive impact on the growth and profit of each member company," said Carlos Ghosn, chairman and CEO of Renault-Nissan-Mitsubishi.
"In 2017, the Alliance turbo-charged the performance of all three companies including Mitsubishi Motors which saw its first full-year of synergy gains."
"We expect to generate growing synergies in coming years as the Alliance accelerates convergence through increased utilization of joint plants, common vehicle platforms, technology-sharing and our combined presence in mature and emerging markets. We reaffirm our synergy goal of more than €10 billion by the end of 2022."
Under the Alliance 2022 mid-term plan, the member companies forecast to sell more than 14 million vehicles by the end of the plan, of which 9 million will be built on four common platforms including electric and B segment vehicles, and extending the use of common powertrains from one third to 75% of the total.
Through the converged Engineering function, the Alliance member companies share R&D costs and investments, which increase their competitiveness.
For instance, Nissan and Mitsubishi Motors joined forces last year to develop the next generation of Kei cars. ■