Strategic Analysis of the Renault-Nissan-Mitsubishi Alliance

Strategic Analysis of the Renault-Nissan-Mitsubishi Alliance

By Launching 12 New EV Models, the Alliance is Set to be the First to Cross the One-million-a-year Sales Mark by 2022

RELEASE DATE
11-Sep-2018
REGION
Global
Research Code: MDD5-01-00-00-00
SKU: AU01712-GL-MR_22300

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Description

In 2017, the Renault-Nissan-Mitsubishi Alliance sold an estimated 10.6 million passenger vehicles and light commercial vehicles (LCVs), making it the best-selling automotive group in the world. Such an achievement stems from the Alliance’s commitment to driving maximum synergies, while enabling individual brands to retain their distinct identities and realise sustained revenue growth.

Renault sold more than 3.76 million vehicles in 2017, establishing a strong presence in emerging markets: Russia, India, Iran, Turkey, and Brazil. Nissan sold more than 5.8 million vehicles, while Mitsubishi (in which Nissan has a controlling stake) racked up sales of 1 million in vehicle, with China and the US being the largest markets for both companies.

Renault and Nissan have generated strong synergies over the years in the purchasing, engineering, and manufacturing spaces.
a. Purchasing: Since 2009, the Renault-Nissan Purchasing Organisation (RNPO) has been responsible for 100% of all Alliance purchases. The convergence of platform, powertrain, and component development has helped RNPO generate very high economies of scale for the Alliance.
b. Engineering: The joint development of a modular vehicle platform—the Common Module Family (CMF) —is aimed at reducing manufacturing costs across the Alliance
c. Manufacturing: In emerging markets, such as Russia, India and Brazil, the Alliance has worked in unison to boost market penetration. In 2010, the first joint manufacturing facility was set up in India, to manufacture Renault, Nissan and Datsun vehicles.
d. LCV: Renault, which also manufactures for Fiat and Nissan, has a strong presence in the global van market, while Nissan has a light truck business unit. The LCV unit was spun off into a separate business unit in 2017, to grow LCV sales worldwide.


Research Highlights

Future of the Alliance: In September 2017, the Alliance announced its ambitious six-year plan. Highlights of the Alliance 2022 plan are: 

  • 9 million vehicles to share four platforms
  • Powertrain sharing to increase from 30% to 75%
  • 12 pure electric models
  • 40 vehicles with autonomous drive technology
  • Robo-vehicle ridehailing service operator

Key Conclusion

Renault, Nissan, and Mitsubishi have come together to form Alliance Ventures, a venture capital unit through which they intend to spend $1 billion in the next 5 years on innovative technology and new business models.

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Executive Summary—Key Highlights

Sales Performance Benchmarking

Executive Summary—Alliance 2022 Plan

Executive Summary—Common Module Family (CMF)

Executive Summary—Electrification Model Roadmap

Executive Summary—Autonomous Vehicle Rollout

Executive Summary—Global Manufacturing Footprint

Executive Summary—Current and Future Outlook

Research Scope Aims and Objectives

Research Aims and Objectives

Key Questions this Study Will Answer

Vehicle Segment Definitions

The Need for the Alliance

Alliance—Structure

Alliance—Organization

Alliance—Company Performance

Alliance 2022 Plan

Alliance—Synergies

Alliance—Challenges

Financial Performance Benchmarking

Sales Performance Benchmarking

Alliance Top Markets #1—China

Alliance Top Markets #2—US

Alliance Top Markets #3—France

Alliance Top Markets #4—Japan

Alliance Top Markets #5—Russia

Alliance Performance in Emerging Nations

Model Line-up—Hatchbacks and Sedans

Model Line-up—SUVs, Wagon and Trucks

Best-performing Models—Renault

Best-performing Models—Nissan

Best-performing Models—Mitsubishi

Alliance Luxury Vehicle Brand—Infiniti

Alliance as a Pioneer of Advanced Technology—QX50

Performance Vehicles

Light Commercial Vehicles

Common Module Family (CMF)

CMF Platform—Model Evolution

Platform Future Strategy—CMF-B

Powertrain Portfolio 2018

Powertrain Synergies and Future Models

Electrification 2018

Electrification—Battery Ecosystem

Electrification Technology Evolution

Electrification Model Roadmap

Electrification Partnership

Autonomous Vehicles 2018

Future of Autonomous Technology

Autonomous Vehicle Rollout

Future of HMI in Autonomous Vehicles

Future of Connectivity

Advanced Technology Partnerships

Global Manufacturing Footprint

Manufacturing Strategy—France and Japan

Manufacturing Strategy—North America

Manufacturing Strategy—South America

Manufacturing Strategy—Southeast Asia

Manufacturing Strategy—China

Manufacturing Strategy—Europe

Battery Manufacturing

Battery Reusability

Purchasing and Aftermarket Synergies

Impact of the Manufacturing Strategies on the Alliance

Daimler-Alliance Relationship

Advantages of the Daimler Partnership

Future of the Daimler Partnership—COMPAS

The Future of the Daimler Partnership

Current Retail Strategy

Future Brick-and-Mortar Retail Strategy

Online Retail Strategy

Impact of Retail Strategy on the Alliance

Financial Services Highlights

Future of Financial Services

RCI Bank Partners and Acquisitions

Other Financial Services

Alliance Ventures—Structure

Alliance Ventures—Comparison

Ionic Materials—Why Did RNM Invest in this Company?

The Impact of Start-ups on the Alliance

New Mobility Services—Current Scenario

Car Sharing Services—Key Markets

New Mobility Services—Partnerships

New Mobility Strategy—Future

The Impact of New Mobility Services on the Alliance

Growth Opportunity for the Alliance

Strategic Imperatives for Success and Growth

The Last Word—3 Big Predictions

Legal Disclaimer

Market Engineering Methodology

List of Exhibits

List of Figures
  • 1. Alliance: Electric Model Rollout, Global, 2018–2022
  • 2. Alliance: Autonomous Vehicle Rollout, Global, 2016–2019
  • 3. Renault Nissan Mitsubishi Alliance: Current and Future Outlook, Global, 2017 and 2023
  • 4. Vehicle Segment Definitions, Global, 2018
  • 5. Alliance: Structure, Global, 2017
  • 6. Unit Sales, Emerging Markets, 2016 and 2017
  • 7. Top Performing Vehicle for Renault Group, Global, 2017
  • 8. Vehicle with Highest YoY Growth in Renault Group, Global, 2017
  • 9. Vehicle with Highest YoY Growth in Nissan Group, Global,2017
  • 10. Top Performing Vehicle for Nissan Group, Global, 2017
  • 11. Top Performing Vehicle for Mitsubishi Group, Global, 2017
  • 12. Vehicle with Highest YoY Growth in Mitsubishi Group, Global, 2017
  • 13. Motorsports Derived Technology, Global, 2017
  • 14. Alliance: Common Modular Family Platform, Global, 2013–2022
  • 15. Electric Vehicle Portfolio, Global, 2017
  • 16. Battery Suppliers and Chemistry Used, Global, 2017
  • 17. Alliance: Electrification Technology Evolution, Global, 2010–2018
  • 18. Alliance: Electric Model Rollout, Global, 2018–2022
  • 19. Alliance: Autonomous Vehicle Rollout, Global, 2016–2019
  • 20. Alliance: Aftermarket Synergies, Global, 2017 and 2023
  • 21. Alliance: Purchase Synergies, Global, 2017
  • 22. Alliance Dealerships and Brand-wise split, Global, 2017
  • 23. Alliance Dealerships: Key Markets, Global, 2017
  • 24. Alliance: RCI Bank Partners and Acquisitions, Global, 2017
  • 25. Alliance: Ventures Comparison, Global, 2017
  • 26. Alliance: Strategic Imperatives for Success and Growth, Global, 2017
List of Charts
  • 1. Top 5 Automotive OEM Groups’ PVs and LCVs, Global, 2017
  • 2. Alliance 2022 Targets, Global, 2017
  • 3. Alliance Manufacturing Facilities, Global, 2017
  • 4. Alliance: Company Performance, Global, 2017
  • 5. Alliance 2022 Targets, Global, 2017
  • 6. Alliance: Synergies Generated, Global, 2009–2022
  • 7. Alliance: Finance Performance Benchmarking, Global, 2015–2018
  • 8. Top 5 Automotive OEM Groups’ PVs and LCVs, Global, 2017
  • 9. Top-selling Vehicles, China, 2017
  • 10. Unit Sales Share of Alliance Brands, China, 2017
  • 11. Unit Sales Share of Alliance Brands, US, 2017
  • 12. Top-selling Vehicles, US, 2017
  • 13. Unit Sales Share of Alliance Brands, France, 2017
  • 14. Top-selling Vehicles, France, 2017
  • 15. Unit Sales Share of Alliance Brands, Japan, 2017
  • 16. Top-selling Vehicles, Japan, 2017
  • 17. Top-selling Vehicles, Russia, 2017
  • 18. Unit Sales Share of Alliance Brands, Russia, 2017
  • 19. Unit Sales Share of Alliance Brands, Emerging Markets, 2017
  • 20. Alliance: Hatchbacks and Sedans, Global, 2018
  • 21. Alliance: SUVs, Wagon and Trucks, Global, 2018
  • 22. Luxury Vehicles—Infiniti Unit Sales, Global, 2014–2017
  • 23. RNM Alliance Powertrain Distribution, Global, 2017 and 2023
  • 24. Nissan LEAF Sales, US & Europe, 2014–2017
  • 25. Alliance: Manufacturing Facilities, Global, 2017
  • 26. Percent Split of Dealerships by Brand, Global, 2017
  • 27. Number of Vehicle Contracts, Global, 2017–2022
  • 28. Number of Service Contracts, Global, 2017–2022
Related Research
In 2017, the Renault-Nissan-Mitsubishi Alliance sold an estimated 10.6 million passenger vehicles and light commercial vehicles (LCVs), making it the best-selling automotive group in the world. Such an achievement stems from the Alliances commitment to driving maximum synergies, while enabling individual brands to retain their distinct identities and realise sustained revenue growth. Renault sold more than 3.76 million vehicles in 2017, establishing a strong presence in emerging markets: Russia, India, Iran, Turkey, and Brazil. Nissan sold more than 5.8 million vehicles, while Mitsubishi (in which Nissan has a controlling stake) racked up sales of 1 million in vehicle, with China and the US being the largest markets for both companies. Renault and Nissan have generated strong synergies over the years in the purchasing, engineering, and manufacturing spaces. a. Purchasing: Since 2009, the Renault-Nissan Purchasing Organisation (RNPO) has been responsible for 100% of all Alliance purchases. The convergence of platform, powertrain, and component development has helped RNPO generate very high economies of scale for the Alliance. b. Engineering: The joint development of a modular vehicle platform—the Common Module Family (CMF) —is aimed at reducing manufacturing costs across the Alliance c. Manufacturing: In emerging markets, such as Russia, India and Brazil, the Alliance has worked in unison to boost market penetration. In 2010, the first joint manufacturing facility was set up in India, to manufacture Renault, Nissan and Datsun vehicles. d. LCV: Renault, which also manufactures for Fiat and Nissan, has a strong presence in the global van market, while Nissan has a light truck business unit. The LCV unit was spun off into a separate business unit in 2017, to grow LCV sales worldwide.--BEGIN PROMO--

Research Highlights

Future of the Alliance: In September 2017, the Alliance announced its ambitious six-year plan. Highlights of the Alliance 2022 plan are: 

  • 9 million vehicles to share four platforms
  • Powertrain sharing to increase from 30% to 75%
  • 12 pure electric models
  • 40 vehicles with autonomous drive technology
  • Robo-vehicle ridehailing service operator

Key Conclusion

Renault, Nissan, and Mitsubishi have come together to form Alliance Ventures, a venture capital unit through which they intend to spend $1 billion in the next 5 years on innovative technology and new business models.

More Information
No Index No
Podcast No
Table of Contents | Executive Summary~ || Executive Summary—Key Highlights~ || Sales Performance Benchmarking~ || Executive Summary—Alliance 2022 Plan~ || Executive Summary—Common Module Family (CMF)~ || Executive Summary—Electrification Model Roadmap~ || Executive Summary—Autonomous Vehicle Rollout~ || Executive Summary—Global Manufacturing Footprint~ || Executive Summary—Current and Future Outlook~ | Research Scope and Methodology~ || Research Scope Aims and Objectives~ || Research Aims and Objectives~ || Key Questions this Study Will Answer~ || Vehicle Segment Definitions~ | Overview of the Alliance and its Brand Synergies~ || The Need for the Alliance~ || Alliance—Structure~ || Alliance—Organization~ || Alliance—Company Performance~ || Alliance 2022 Plan~ || Alliance—Synergies~ || Alliance—Challenges~ | Overview of Key Market Performance~ || Financial Performance Benchmarking~ || Sales Performance Benchmarking~ || Alliance Top Markets #1—China~ || Alliance Top Markets #2—US~ || Alliance Top Markets #3—France~ || Alliance Top Markets #4—Japan~ || Alliance Top Markets #5—Russia~ || Alliance Performance in Emerging Nations~ | Product Portfolio Strategy~ || Model Line-up—Hatchbacks and Sedans~ || Model Line-up—SUVs, Wagon and Trucks~ || Best-performing Models—Renault~ || Best-performing Models—Nissan~ || Best-performing Models—Mitsubishi~ || Alliance Luxury Vehicle Brand—Infiniti~ || Alliance as a Pioneer of Advanced Technology—QX50~ || Performance Vehicles~ || Light Commercial Vehicles~ || Common Module Family (CMF)~ || CMF Platform—Model Evolution~ || Platform Future Strategy—CMF-B~ | Technology Strategy—Powertrain & Electrification~ || Powertrain Portfolio 2018~ || Powertrain Synergies and Future Models~ || Electrification 2018~ || Electrification—Battery Ecosystem~ || Electrification Technology Evolution~ || Electrification Model Roadmap~ || Electrification Partnership~ | Technology Strategy—Autonomous and Connected Technology~ || Autonomous Vehicles 2018~ || Future of Autonomous Technology~ || Autonomous Vehicle Rollout~ || Future of HMI in Autonomous Vehicles~ || Future of Connectivity~ || Advanced Technology Partnerships~ | Manufacturing Strategies~ || Global Manufacturing Footprint~ || Manufacturing Strategy—France and Japan~ || Manufacturing Strategy—North America~ || Manufacturing Strategy—South America~ || Manufacturing Strategy—Southeast Asia~ || Manufacturing Strategy—China~ || Manufacturing Strategy—Europe~ || Battery Manufacturing~ || Battery Reusability~ || Purchasing and Aftermarket Synergies~ || Impact of the Manufacturing Strategies on the Alliance~ | Daimler Strategic Cooperation~ || Daimler-Alliance Relationship~ || Advantages of the Daimler Partnership~ || Future of the Daimler Partnership—COMPAS~ || The Future of the Daimler Partnership~ | Retail Strategies~ || Current Retail Strategy~ || Future Brick-and-Mortar Retail Strategy~ || Online Retail Strategy~ || Impact of Retail Strategy on the Alliance~ | Financial Services Strategy~ || Financial Services Highlights~ || Future of Financial Services~ || RCI Bank Partners and Acquisitions~ || Other Financial Services~ || Alliance Ventures—Structure~ || Alliance Ventures—Comparison~ || Ionic Materials—Why Did RNM Invest in this Company?~ || The Impact of Start-ups on the Alliance~ | New Mobility Strategies~ || New Mobility Services—Current Scenario~ || Car Sharing Services—Key Markets~ || New Mobility Services—Partnerships~ || New Mobility Strategy—Future~ || The Impact of New Mobility Services on the Alliance~ | Growth Opportunities and Companies to Action~ || Growth Opportunity for the Alliance~ || Strategic Imperatives for Success and Growth~ | Conclusions~ || The Last Word—3 Big Predictions~ || Legal Disclaimer~ | Appendix~ || Market Engineering Methodology~ || List of Exhibits~
List of Charts and Figures 1. Alliance: Electric Model Rollout, Global, 2018–2022~ 2. Alliance: Autonomous Vehicle Rollout, Global, 2016–2019~ 3. Renault Nissan Mitsubishi Alliance: Current and Future Outlook, Global, 2017 and 2023~ 4. Vehicle Segment Definitions, Global, 2018~ 5. Alliance: Structure, Global, 2017~ 6. Unit Sales, Emerging Markets, 2016 and 2017~ 7. Top Performing Vehicle for Renault Group, Global, 2017~ 8. Vehicle with Highest YoY Growth in Renault Group, Global, 2017~ 9. Vehicle with Highest YoY Growth in Nissan Group, Global,2017~ 10. Top Performing Vehicle for Nissan Group, Global, 2017~ 11. Top Performing Vehicle for Mitsubishi Group, Global, 2017~ 12. Vehicle with Highest YoY Growth in Mitsubishi Group, Global, 2017~ 13. Motorsports Derived Technology, Global, 2017~ 14. Alliance: Common Modular Family Platform, Global, 2013–2022~ 15. Electric Vehicle Portfolio, Global, 2017~ 16. Battery Suppliers and Chemistry Used, Global, 2017~ 17. Alliance: Electrification Technology Evolution, Global, 2010–2018~ 18. Alliance: Electric Model Rollout, Global, 2018–2022~ 19. Alliance: Autonomous Vehicle Rollout, Global, 2016–2019~ 20. Alliance: Aftermarket Synergies, Global, 2017 and 2023~ 21. Alliance: Purchase Synergies, Global, 2017~ 22. Alliance Dealerships and Brand-wise split, Global, 2017~ 23. Alliance Dealerships: Key Markets, Global, 2017~ 24. Alliance: RCI Bank Partners and Acquisitions, Global, 2017~ 25. Alliance: Ventures Comparison, Global, 2017~ 26. Alliance: Strategic Imperatives for Success and Growth, Global, 2017~| 1. Top 5 Automotive OEM Groups’ PVs and LCVs, Global, 2017~ 2. Alliance 2022 Targets, Global, 2017~ 3. Alliance Manufacturing Facilities, Global, 2017~ 4. Alliance: Company Performance, Global, 2017~ 5. Alliance 2022 Targets, Global, 2017~ 6. Alliance: Synergies Generated, Global, 2009–2022~ 7. Alliance: Finance Performance Benchmarking, Global, 2015–2018~ 8. Top 5 Automotive OEM Groups’ PVs and LCVs, Global, 2017~ 9. Top-selling Vehicles, China, 2017~ 10. Unit Sales Share of Alliance Brands, China, 2017~ 11. Unit Sales Share of Alliance Brands, US, 2017~ 12. Top-selling Vehicles, US, 2017~ 13. Unit Sales Share of Alliance Brands, France, 2017~ 14. Top-selling Vehicles, France, 2017~ 15. Unit Sales Share of Alliance Brands, Japan, 2017~ 16. Top-selling Vehicles, Japan, 2017~ 17. Top-selling Vehicles, Russia, 2017~ 18. Unit Sales Share of Alliance Brands, Russia, 2017~ 19. Unit Sales Share of Alliance Brands, Emerging Markets, 2017~ 20. Alliance: Hatchbacks and Sedans, Global, 2018~ 21. Alliance: SUVs, Wagon and Trucks, Global, 2018~ 22. Luxury Vehicles—Infiniti Unit Sales, Global, 2014–2017~ 23. RNM Alliance Powertrain Distribution, Global, 2017 and 2023~ 24. Nissan LEAF Sales, US & Europe, 2014–2017~ 25. Alliance: Manufacturing Facilities, Global, 2017~ 26. Percent Split of Dealerships by Brand, Global, 2017~ 27. Number of Vehicle Contracts, Global, 2017–2022~ 28. Number of Service Contracts, Global, 2017–2022~
Author Venkata Balakrishnan
Industries Automotive
WIP Number MDD5-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9AF6-A6