Automakers will produce in conjunction until 2025

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Automakers will manufacture in concert until 2025

Automakers Renault, Nissan and Mitsubishi will produce about 50% of their models in conjunction, in a single plant within the group, from now until 2025. This is to improve profitability and reduce costs and investment expenses by up to 40% in each vehicle made in conjunction by the French-Japanese alliance.

According to Jean-Dominique Senard, president of Renault, this alliance is considered unique in the automotive industry and is crucial for becoming efficient, as well as being competitive beyond sales volumes, even though the three assembly plants have been number one in the world with more than 10.6 million units.

However, based on results at the beginning of the pandemic, profitability began to decline, so stepping up cooperation between the three automakers was their response to the global crisis that has crippled the automotive industry.

Technology sharing is a key component of the alliance

The goal of the new strategy is for each company to lead in a region, product or technology and for the other partners to follow. Therefore, vehicle production will be jointly executed in one single plant of the group. For example, SUVs (sport utility vehicles) or mid-size city vehicles such as Renault Kadjar and Nissan Qashqai will be produced by Nissan, while small SUVs (such as Renault Captur and Nissan Juke) will be produced by Renault.

In terms of geographic distribution, Nissan will be responsible for China, North America and Japan, Renault will be responsible for Europe, Russia, South America and North Africa, and Mitsubishi Motors will be responsible for South East Asia and Australia.

In addition, the three companies will distribute their responsibilities for various key technologies. For example, Nissan will be responsible for self-driving vehicles and the motorization of future electric models; Renault will be in charge of connection technologies based on the Android system, which is used worldwide except in China, where Nissan will be in charge. Renault is also responsible for the electrical-electronic architecture and motorization of electric vehicles based on thermal power; and Mitsubishi Motors will be the leader in rechargeable hybrid (gasoline-electric) technology for medium and large vehicles.

Oradel is committed to the automotive industry

Throughout 20 years, Oradel has innovated its facilities by seeking international manufacturing companies to set up their operations within the industrial park, providing them with all the necessary services to carry out their production.

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