Renault, Nissan deepen ties in bid to survive

Video credit: Reuters Studio
Published on May 27, 2020 - Duration: 01:20s

Renault, Nissan deepen ties in bid to survive

Renault and Nissan have set out plans to revive their alliance as they battle a global slump in sales.

Julian Satterthwaite reports.

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Renault, Nissan deepen ties in bid to survive

Renault and Nissan aim to breathe new life into their alliance.

On Wednesday (May 27) they set out a new model for the partnership, which also includes smaller Mitsubishi Motors.

All talk of a merger is gone.

Instead the plan will see each take the lead in defined regions and product sectors.

Nissan will be to the fore in Japan, China and North America.

Renault takes the lead in Europe, Russia, South America and North Africa; Mitsubishi in Southeast Asia and Oceania.

It’s hoped the plan will generate major cost savings.

The trio aim to cut investment per new model by up to 40%.

Executives said they would now be more focused on efficiency than sales volumes.

Their range of vehicles is expected to shrink by a fifth by 2025.

Renault Chairman Jean-Dominique Senard said the plan would bring savings of as much as 20% in some areas.

The moves come as global automakers battle a worldwide slump in sales.

Renault-Nissan ties have also been battered by the fallout from the ousting of former boss Carlos Ghosn.

Their alliance once had the lofty goal of becoming the world’s biggest carmaker.

Right now, the focus is on survival.

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