Renault and Nissan rule out merger as they unveil survival plan

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Renault , Nissan Motor Co and Mitsubishi Motors Corp ruled out a merger on Wednesday and instead said they would cooperate more closely on vehicle development to slash costs and salvage their troubled alliance.

) ruled out a merger on Wednesday and instead said they would cooperate more closely on vehicle development to slash costs and salvage their troubled alliance.

“There is no plan for a merger of our companies,” Renault Chairman Jean-Dominique Senard told a news conference to unveil the new alliance strategy. “Our model today is a very distinctive model ... we don’t need a merger to be efficient.”The companies are now aiming to make savings by sharing out their production more systematically in a so-called leader-follower system, with one company leading for a particular type of vehicle and geography and the others following.

Working together has posed challenges to Renault, Nissan and junior partner Mitsubishi, which joined the alliance in 2016, due to differences in corporate cultures and simmering tensions over the Alliance’s capital structure.See more stories The range of vehicles they produce is expected to fall by 20% by 2025 though the firms did not say how many jobs would go as they shift production.

“The previous strategy was focused on growth and volume ... we focused as much as possible on differentiation in models to achieve growth,” Alliance General Secretary Hadi Zablit told reporters. “Today we have a much higher scope of sharing between the brands.”

 

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I wonder what would have happened if Renault got Nissan to join with pen and paper for a Fiat Chrysler merger...still,it may still happen,unless that's why the alliance is still holding its own..top up,no thank you...I'm just right..

good luck

'Failing automakers consolidate in an attempt to survive post-COVID hellscape.'

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