The Renault–Nissan–Mitsubishi Alliance is a French-Japanese strategic partnership between the automobile manufacturers Renault (based in Boulogne-Billancourt, France), Nissan (based in Yokohama, Japan) and Mitsubishi Motors (based in Tokyo, Japan), which together sell more than 1 in 9 vehicles worldwide.Originally known as the Renault–Nissan Alliance, Renault and Nissan became strategic partners in 1999 and have nearly 450,000 employees and control ten major brands: Renault, Nissan, Mitsubishi, Infiniti, Renault Samsung, Dacia, Alpine, Datsun, Venucia and Lada.
The car group sold 10.6 million vehicles worldwide in 2017, making it the leading light vehicle manufacturing group in the world.The Alliance adopted its current name in September 2017, one year after Nissan acquired a controlling interest in Mitsubishi and subsequently made Mitsubishi an equal partner in the Alliance.
As of December 2019, the Alliance is one of the world's leading electric vehicle manufacturing groups, with global sales of over 800,000 electric vehicles since 2010. The top selling vehicles of the Alliance EV line-up are the Nissan Leaf and the Renault Zoe all-electric cars.
The strategic partnership between Renault, Nissan and Mitsubishi is not a merger or an acquisition. The three companies are joined together through a cross-sharing agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and the PSA Group,and Mitsubishi, as well as the Volkswagen Group and Suzuki,[9] though the latter combination failed.The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng and Russia's AvtoVAZ.
Following the November 2018 arrest and imprisonment of Alliance chairman and CEO Carlos Ghosn, accompanied by his dismissal from the alliance and its components, press analysts have questioned both the stability of the Alliance's shareholding agreement and its long-term existence.These analysts also note that, because the companies' recent business strategies are interdependent, attempts to restructure the Alliance could be counter-productive for all of the members.
History
The Alliance began on 27 March 1999. At the time, the auto industry was in a period of rapid consolidation. Numerous companies merged or were acquired in high-profile deals, most notably Daimler's acquisition of Chrysler in 1998 (which dissolved in 2007, when the companies separated).
At the time it was created, Renault bought 36.8 percent of Nissan's outstanding stock and Nissan vowed to buy into Renault when it was financially able. In 2001, after the company's turnaround from near-bankruptcy, Nissan bought a 15 percent stake in Renault, which in turn increased its stake in Nissan to 44.4 percent.
In 2002, the Alliance created the Renault–Nissan BV (RNBV), a strategic management company to oversee areas such as corporate governance between the two companies. Based in Amsterdam, it is owned 50/50 by Renault and Nissan and provides a neutral location for the Alliance to exchange ideas, build strategy and help leverage the maximum synergies between the two companies.
In 2006, the Alliance began exploratory talks with General Motors regarding the possibility of creating an industrial alliance.The talks were instigated by GM minority shareholder Kirk Kerkorian. GM reportedly demanded payment of several billion dollars to engage in an alliance, prompting Ghosn to call the terms "contrary to the spirit of an alliance." Discussions ended without agreement in October 2006, when Ghosn said, "It's clear the two sides have completely different appetites for an alliance."
Since 2010, the Alliance has undertaken a number of projects as part of a strategic cooperation deal with the German Daimler AG company.
Given picture shows global sales -
In 2014, Renault and Nissan combined various research and development, manufacturing and business operations to increase money savings, integrate the two companies and accelerate development.
In September 2017, the Alliance announced its six-year plan "Alliance 2022" that set a new target to double annual synergies to €10 billion by the end of the plan. Carlos Ghosn said: “Today marks a new milestone for our member companies. By the end of our strategic plan Alliance 2022, we aim to double our annual synergies to €10 billion. To achieve this target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies. From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at $240 billion by the end of the plan.” Beside the announcement of the new plan, the new logo and the new name of the Alliance had been launched.
According to the Alliance, it sold one in nine cars worldwide in 2017, ranking as the world's largest producer of light vehicles by sales, with 10,608,366 units sold. In 2017, the Renault-Nissan-Mitsubishi alliance recorded an increase of 6.5% compared to 2016.
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