Alliance Operating Board strengthens use of resources and investments

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Renault, which supplies Master vans for conversion to minibuses, is part of the Alliance Operating Board and has outlined its plans for the future in a recent statement

Renault-Nissan-Mitsubishi has outlined a new framework to further reinforce its business model and strengthen its management structure. All three companies reiterated that the Alliance is essential for strategic growth and enhancing competitiveness for each company.

The new framework, ratified at a meeting of the Alliance Operating Board (AOB) in Yokohama, Japan, will enhance the ability of the Alliance member companies to capitalise on the individual companies strengths and complement their strategies.

The AOB also reaffirmed key programs outlined at the previous board meeting in November to support initiatives that will enable each member company to increase competitiveness and profitability amid the industry shift to new mobility services.

The alliance is reinforcing its collaboration models to fully leverage the strengths within each company to enhance its leadership across regions, products and new technologies. The AOB has decided:

  • On regions, each of the three companies will be the reference company for a dedicated region: Nissan for China, Renault for Europe, Mitsubishi for South East Asia.
  • The engineering will work on a leader/follower model, expanding this scheme to platforms, powertrains and key technologies. Thus, one company will take the lead in the Alliance for the development of each key technology, which will then be spread among Alliance partners.
  • The AOB also decided to pool the three companies’ CAFE credit in Europe as early as 2020.
  • On Light Commercial Vehicles, Renault will develop and manufacture at its in Sandouville plant, the Mitsubishi van based on the Renault Trafic platform to be sold in the Oceania region.
  • Strategic mid-term plans of the three companies will be disclosed simultaneously around May 2020, integrating the major consequences of the Alliance Operating Board decisions.

The alliance believes this new scheme will enhance the effectiveness and efficiency of its projects, to further strengthen the use of resources and investments within the three companies.

The AOB, which consists of one chairman and the chairman or chief executive officer of each member company, also agreed to engage actively with the respective Board of Directors of Renault, Nissan and Mitsubishi Motors to strengthen its governance to operate effectively for the benefit of each member company. Such initiatives, it says, will maximise the collaboration within the Alliance while preserving the identity and autonomy of each member company.