RENAULT-NISSAN-MITSUBISHI ALLIANCE
• Established in 1999, it was initially a Renault-Nissan Alliance before Mitsubishi joined in 2016.
• The alliance aims to share resources, technology, and research to reduce costs and increase innovation.
They collaborate in areas like electric vehicles, autonomous driving, and connected car technologies.
• The alliance operates under a cross-shareholding structure. Nissan later took 34% of Mitsubishi in
2016. Renault owns a 43% stake in Nissan and Nissan owns 15% of Renault Group.
RENAULT-NISSAN-MITSUBISHI ALLIANCE
As per the ‘Strategic Alliance Orientations for Primary Risk & Resources’ model, it is a Productivity and
Security Orientation.
Alliance management is through optimal complementarity, cost minimization and opportunity maximization
as per the Article “Exploring critical success factors of competence-based synergy in strategic alliances: The
Renault-Nissan Mitsubishi Strategic Alliance”. Examples:
• By including Mitsubishi in the alliance, the Renault–Nissan alliance afterwards gained core competencies
in plug-in-hybrid-electric vehicles (PHEVs)
• Example: Nissan’s award-winning ProPILOT system, etc.
• Synergies created:
Primary Risk
Strategic Alliance
Orientations for Primary
Risk & Resources Relational Performance
Risk Risk
Control Flexibility
Property
orientation orientation
Primary
Resource
Security Productivity
Knowledge
Orientation Orientation
RENAULT-NISSAN-MITSUBISHI ALLIANCE
Nissan Renault
Mitsubishi TradingEconomics.com:
• The following graph shows the EBIDTA of each alliance
member on a positive revenue track.
• Mitsubishi faced losses in the year 2021 due to
Restructuring which was done due to poor sales growth in
China and Southeast Asia.
• This graph shows positive acculturation and synergies in
operations among the alliance members.
RENAULT-NISSAN-MITSUBISHI ALLIANCE
The alliance shows positive growth prospects as foundations of the future including the following decisions:
Rebalance Approach: Equal cross-ownership to bridge possible ownership disputes. (
https://economictimes.indiatimes.com/news/international/business/renault-and-nissan-hail-rebalanced-alliance-
to-bury-tensions/articleshow/97675028.cms?from=mdr
).
As per ‘Alliance 2030: Best of 3 worlds for a new future’, the company is focusing on:
• Aim to enhance usage of common platforms to reach 80% in 2026.
• The Alliance is working with common partners to achieve real scale and affordability,
enabling it to reduce battery costs by 50% in 2026 and 65% by 2028.
• Use “smart differentiation” methodology to define the desired level of commonality for
each vehicle, integrating several parameters of possible pooling, such as platforms,
production plants, powertrains or vehicle segments (
https://global.nissannews.com/en/releases/alliance-digital-conference-2022).
