POST Online Media Lite Edition



 

Renault-Nissan-Mitsubishi increase annual synergies to €5.7 billion

Staff Writer |
Renault - Nissan - Mitsubishi reported a 14% increase in annualized synergies to €5.7 billion, up from €5 billion in 2016, as members of the world's largest automotive alliance benefited from growing cost savings, incremental revenues and cost avoidance.

Article continues below




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.


What to read next

Nissan buys $2.2 billion controlling stake in Mitsubishi
Four companies to stay as stakeholders in Mitsubishi
Nissan and Renault made deal, France satisfied