Nissan and Renault logos at a dealership on May 27 2020 in Tsukuba, Japan. Picture: GETTY IMAGES/TOMOHIRO OHSUMI
The new plan, which entails cutting the alliance’s vehicle ranges by 20%, pooling manufacturing by region and capitalising on joint designs, is meant to serve as a peace treaty, sources have said. Rivals, such as Peugeot and Fiat Chrysler, have been pushing ahead with plans to share costs and designs while the two biggest carmakers, Volkswagen and Toyota, already operate as single units.
A tighter design and development process at the alliance, whose best-known cars include the Renault Clio compact hatchback, the Nissan Rogue crossover SUV, and the Mitsubishi Outlander SUV, would reduce it total number of models by 20% by 2025 from well over 80 now. Renault, Nissan and junior partner Mitsubishi, which joined the alliance in 2016, have clashed previously due to differences in corporate cultures and opposing views over structures. Renault owns 43% of Nissan, while Nissan has 15% of Renault but no voting rights. Nissan has resisted proposals for a full-blown merger as executives felt Renault was not paying its fair share for the engineering work it did in Japan.