Renault-Nissan-Mitsubishi to invest £8.9bn in electric and autonomous cars

Renault-Nissan-Mitsubishi to invest £8.9bn in electric and autonomous cars

Leveraging economies of scale, the partnership of Renault-Nissan plans to expand their electric vehicle offerings, according to a new strategic plan outlined this week.

Furthermore, the goal is to double annual synergies to 10 billion euros (Rs 76,440 crore) by the end of 2022.

But he said there were no plans to consolidate the alliance into a single company or increase its members' cross-shareholdings, saying the strategic plan would be "respecting the companies' identities".

He further said to achieve the target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next- generation electric, autonomous and connected technologies.

The alliance also plans to benefit from enhanced economies of scale.

The alliance forecasts unit sales of 14 million and combined revenues of $240 billion, up more than 30 percent on the $180 billion aggregate revenues achieved in 2016.

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The Renault Zoe, a hatchback one size smaller launched in 2012 by its French alliance partner, is the best-selling electric auto in Europe-though its uses largely separate underpinnings than the Leaf. The plan will also extend the use of common powertrains to 75 percent of total sales.

The targets were announced as part of a new strategic plan by the alliance after its takeover of Mitsubishi a year ago. Over the same period, 40 vehicles will be introduced with different levels of autonomy, all the way to fully autonomous capability.

Carlos Ghosn has always been careful to say that the success of the Renault-Nissan alliance should be measured in synergies among the partners, not sales growth.

They operate as three separate, cooperating companies with a layer of common management, headed by Carlos Ghosn. The alliance was the world's No. 1 automotive group by volume in the first half, selling more than 5.26 million vehicles, he said. It aims to exceed combined sales of 14 million units, up almost 40 percent by the end of the plan. "Becoming an operator of robo-vehicle ride-hailing services is a major part of the new mobility services strategy", the press release states. This will complement synergies from existing converged functions in engineering; manufacturing engineering and supply-chain; purchasing and human resources.

Ghosn pledged to increase that figure to more than 9 million alliance vehicles on four common platforms. They will be underpinned by common electric vehicle platforms and share components even though they will be introduced in multiple segments.

A new family of EV motor and batteries are set to be introduced from 2020, shared across the member companies that will power 12 new pure electric vehicles to be launched by 2022.