Under Alliance 2022, Renault, Nissan and Mitsubishi Motors to strengthen cooperation and accelerate use of common platforms, powertrains and new technologies. To double annual synergies to €10 billion by the end of 2022.
15 Sep 2017 | 17762 Views | By Autocar Pro News Desk
The triumvirate of Renault, Nissan and Mitsubishi has unveiled a new six-year plan designed to achieve some ambitious targets. Under Alliance 2022, the three automakers aim to strengthen their level of cooperation and accelerate the use of common platforms, powertrains and new technologies. The overarching goal is to double annual synergies to 10 ...
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The triumvirate of Renault, Nissan and Mitsubishi has unveiled a new six-year plan designed to achieve some ambitious targets. Under Alliance 2022, the three automakers aim to strengthen their level of cooperation and accelerate the use of common platforms, powertrains and new technologies. The overarching goal is to double annual synergies to 10 billion euros (Rs 76,440 crore) by the end of 2022.
Groupe Renault, Nissan Motor and Mitsubishi Motors represent the world's largest automotive alliance. It is the longest-lasting and most productive cross-cultural partnership in the auto industry. Together, the partners sold close to 10 million vehicles in nearly 200 countries in 2016. The three automakers, which are focused on collaboration and maximising synergies to boost competitiveness, have strategic collaborations with other automotive groups, including Germany's Daimler and China's Dongfeng.
Carlos Ghosn, chairman and CEO of the Alliance, 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.”
Alliance 2022 – targets revealed
This year, Renault, Nissan and Mitsubishi Motors became the world's largest automotive group by sales volume. In the first half of 2017, volumes increased by seven percent year-on-year to 5.27 million units, whilst aggregate sales of EVs reached a combined total of more than 500,000 units.
Total unit sales are expected to exceed 14 million vehicles per year by the end of the plan. Combined financial revenues are forecast to reach $240 billion (Rs 1,516,080 crore) by the end of the plan, up more than 30 percent on the $180 billion (Rs 1,137,060 crore) aggregate revenues achieved in 2016.
The increased synergy target of 10 billion euros by the end of the plan follows a 16 percent rise in synergies in 2016 to 5 billion euros (Rs 38,220 crore). The doubling of synergies will be achieved partially by contributions from Mitsubishi Motors, specifically through deeper localisation, joint plant utilisation, common vehicle platforms, and an expanded presence in mature and emerging markets.
Additional synergies are expected from light commercial vehicles (LCVs), aftersales and technology-sharing in EVs, autonomous drive, connected cars and new mobility services. This will complement synergies from existing converged functions in engineering; manufacturing engineering and supply-chain; purchasing and human resources.
Extension of common platforms and powertrains: Alongside the three technology building blocks, Renault, Nissan and Mitsubishi will extend their use of shared common platforms and powertrains. New developments include:
- In 2022, more than 9 million vehicles will be built on four common platforms, up from 2 million vehicles on two platforms in 2016.
- By the end of the plan, the member companies will share 22 engines out of a total of 31, compared with 14 engines out of a combined total of 38 in 2016.
- The common platform strategy (based on the CMF architecture) will be extended to a new common EV platform with advanced autonomous drive capability and to a new B-segment common platform for mid-sized vehicles.
- Mitsubishi Motors will gain access to the CMF architecture and utilise common powertrains by 2020.
The extension of the Common Module Family follows the success of the shared vehicle architecture by Renault and Nissan in recent years, which has included the use of common platforms and powertrains across a widening portfolio of vehicles including the Nissan Rogue, Qashqai and X-Trail, Renault Espace, Kadjar and Megane, as well as the Renault Kwid and Datsun Redigo.
Technology building blocks: The technology building blocks will contribute synergies by avoiding development duplication and providing greater and faster access to innovation for the Alliance.
The Alliance's goal is to reinforce EV leadership to be the number one provider of mainstream, mass market and affordable EVs around the world. By 2022, the member companies will significantly increase their product range to cover all main segments in their key markets of Japan, the USA, China and Europe.
The electrification building block will involve:
- Common, scalable EV platforms for multiple segments by 2020, with a forecast that 70 percent of EV volumes will be based on shared platforms by 2022.
- A new family of EV motor and batteries to be introduced from 2020, shared across the member companies.
- Twelve new pure electric vehicles to be launched by 2022.
- More than 600km EV range reached by 2022, based on NEDC homologation methodology.
- 30 percent decrease in battery cost from 2016 to 2022.
- 15 minutes charging time to deliver range of 230km by 2022, up from 90km in 2016, based on NEDC homologation methodology.
- Optimised, flat packaging of the battery, providing additional cabin space and greater styling flexibility.
- Adoption of Mitsubishi Motors' new PHEV technology as the common C/D segment PHEV solution by 2022.
Delivering autonomous-drive and robo-vehicles: Renault, Nissan and Mitsubishi are on track to launch 40 vehicles with different levels of autonomous drive (AD) technologies by 2022. Test programs are underway in different regions of the world as part of the development of autonomous technologies, which will enable them to offer advanced AD functionality for mainstream, mass-market vehicles.
The timetable for AD deployment will include:
2018: Highly autonomous drive vehicle for use on highways – with a human driver's continuous monitoring of the environment.
2020: Highly autonomous drive vehicle for use in cities – with a human driver's continuous monitoring of the environment.
2020: Highly autonomous drive vehicle for use on highways – with occasional human driver intervention.
2022: First fully autonomous drive vehicle – with no human driver intervention necessary
Field tests are continuing on robo-vehicles with partners DeNA (Japan) and Transdev (France), which will pave the way for a new era of mobility in which the group aims to become:
- A key operator of robo-vehicle ride-hailing mobility services, that will include further partnerships.
- A major player and provider of vehicles for public transit use and car-sharing.
Enabling connectivity and mobility services: The Alliance Connected Vehicles and Mobility Services team is developing new mobility services and partnerships. In addition, new connectivity solutions for end-customers will be available in vehicles starting in 2018. These will include:
- A common in-vehicle infotainment system and common in-vehicle connectivity system
- Launch of a Connected Cloud platform to manage all data interfaces
- The cloud platform will provide a gateway to AD capability for robo-vehicle services, self-driving delivery vehicles and shuttles
Alliance CEO Carlos Ghosn concluded: “This plan will boost the growth and profitability of our member companies. We intend to deliver on growing synergies, with three autonomous companies cooperating with the efficiency of one. The Alliance has grown and performed with two members since 1999. With Alliance 2022, we will prove that we will grow and perform with three companies or more.”