PARIS – French automaker Renault is eating up its collaborative efforts with Nissan Motor and Mitsubishi Motors in Japan, with the three-way alliance planning to share the production of key parts.
Renault unveiled a medium-term strategic plan on Thursday that will emphasize manufacturing cooperation as well as reduce production costs while reducing factories.
The French automaker is increasing the number of cars made with platforms that are shared across the federation.
“In just a few years, more than 7 million cars in the alliance will be built [from] common platforms, and so common parts reach 75-85%, “Chairman Jean-Dominique Senard said in an online interview with Nikkei Asia on Thursday.
Renault expects the percentage of common platform production to increase to 80% in 2025 from 39% in 2020.
The alliance announced last year that it would increase the use of common parts and platforms to reduce costs in research and development and manufacturing.
The alliance in May recorded how the three partners would work together. Each automaker focuses on its own specific segments, then shares the results with the other two. “We are achieving our goal and the alliance is at the top,” said Senard.
Renault expects electric vehicles to become a strength.
“Obviously electric vehicles will be one of the keys in the future,” Senard said. Renault is a leader in the European EV market, which expanded significantly last year, driven by government incentives and consumer confidence in environmentally friendly products.
His big Zoe urban car last year was the best electric vehicle in the area. Renault now plans to release a medium-sized Megane eVision, which will be built on a common EV platform as early as 2022.
Renault’s big urban Zoe car last year was the best electric vehicle in Europe. (Image courtesy of Renault)
Senard commented on the importance of doing business in China, where Renault has struggled to sell its products for years. “The electric car will be a key support” in gaining ground in the world’s largest car market, the chairman said.
Renault was a bit late in reaching China. With Dongfeng Motor with the state, it opened its first factory there in 2016. It has also partnered with Brilliance China Automotive.
Sales have not been what Renault had hoped. In 2020, it sold 155,728 vehicles in China, representing 0.7% of the market. The figure also accounted for 5.3% of Renault’s global sales.
Critics say a small Renault SUV, built in China, failed to appeal to Chinese buyers, who wanted large vehicles.
In April, Renault abandoned its partnership with Dongfeng. “It was, I think, a very reasonable decision,” Senard said. “But we have not finished our story with China. We strongly believe we will be back in China.”
Renault is currently focusing China’s efforts on the K-ZE, an electric vehicle, as well as making light commercial vehicles. French automaker K-ZE launched in China in 2019, selling 2,658 that year.
Renault also plans to make electric vehicles that it manufactures in China for Europe under the Dacia brand, their unit based in Romania.
Renault holds 43.4% of Nissan, and Nissan has 15% of its French partner. Mitsubishi joined the alliance in 2016 when it received investment from Nissan.
Once hailed as the most successful automotive alliance in history, the connection was slammed in November 2018 by a Japanese Carlos arrested by Japanese authorities. At the time, the charismatic Gosn was the chairman of Nissan. He was arrested at an airport in Tokyo on suspicion of financial misconduct, but fled Japan 13 months later in a daring escape. He now lives as a refugee in Lebanon.
The arrest sparked a bitter ruling dispute between the French company and the Japanese ally that tore apart the health and reputation of the partnership. Nissan, which makes and sells far more cars than Renault, has strongly opposed a regulatory integration plan raised by the French side – a topic Senard said the partners were not debating.