Renault, Nissan, Mitsubishi deepen cooperation to survive

Renault SA, Nissan Motor and Mitsubishi Motors announced on Wednesday details of a new strategy plan pledging to deepen cooperation in developing and producing cars to survive as an automaking group, news wires reported. The reworked alliance will focus on more systematic divisions of labour, with one partner leading for a particular type of vehicle and geography while the others follow.

The three carmakers are reeling from the coronavirus pandemic which engulfed them just as they were trying to rework their partnership after the arrest in 2018 and subsequent ousting of its chairman and chief architect, Carlos Ghosn, Reuters reported.

Renault, Nissan and Mitsubishi said that they aimed to produce nearly half of their car output under a new alliance scheme dividing up their production by 2025. Thus they will cut costs by sharing out their production more systematically.

The joint statement said that Nissan would take the lead in some regions such as China and North America, while Renault would be the reference for Europe among other markets. The companies aim to cut investments per car model by up to 40% for vehicles that fall under the scheme.

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