Tuesday, January 14, 2020

Is Nissan Looking to Divorce Renault?


Is the Nissan-Renault-Mitsubishi Alliance on the brink of collapse? That seems to be the case if these reports from Bloomberg and The Financial Times is to be believed.

Aggravated by the length case of disgraced former executive Carlos Ghosn, Nissan is said to be exploring the “pros and cons” of staying in the alliance. Among the plans considered by the Japanese automaker include a total divide in engineering and manufacturing. This comes as Nissan engineers grow discontented within the alliance.

This comes as financial analysts label the relations between Renault and Nissan to be “broken and likely beyond the point of repair.”

Regardless, newly appointed Nissan CEO Makoto Uchida is said to be working closely with his French counterparts, particularly Renault chairman Jean-Dominique Senard to launch new projects. This includes the new Ariya all-electric SUV which will be built on a platform co-developed with Renault.

For its part, Nissan released a statement saying that they are fully committed to the Alliance. Here is the statement in full:
Recently, there have been speculative international media reports on Nissan’s stance towards the Alliance. Contrary to the assertions in the articles, Nissan is in no way considering dissolving the Alliance. 
Nissan, Renault and Mitsubishi Motors set up the Alliance Operating Board (AOB) in March 2019 as a foundation for continuous enhancement and underpinning for future success. 
The AOB, which holds meetings on a monthly basis, has since been the sole body overseeing the operations and governance in the Alliance. 
In November last year, the AOB members all agreed on programs to significantly enhance and accelerate the operational efficiency of the Alliance for the benefit of the member companies, including action plans to maximize the contribution of the Alliance to each company’s strategic plans and operating profit. 
The Alliance is the source of Nissan’s competitiveness. Through the Alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies.
Source: Bloomberg, The Financial Times

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