Renault Details Strengths of Expanding Alliance

Renault SA says its unique alliances with AvtoVAZ in Russia and Nissan and Mitsubishi Motors in Japan give the companies advantages of scale without compromising brand distinctions.

Jeremie Papin, who directs global alliances for Renault, tells Automotive News Europe that the four carmakers are able to reduce costs by pooling orders for common parts. At the same time, the increasing ability to share platforms can give smaller industry players, such as Mitsubishi Motors Corp (MMC), access to a full market range of platforms, powertrains and vehicle types that would be too expensive to develop in-house.

Papin says shared modules have surged from less than 10% to some 60% of Renault’s construction costs over the past five years. He figures 70% sharing among alliance members is an upper limit, beyond which the companies would risk losing product differentiation.

Much of the future sharing will come with MMC, which joined the alliance last autumn. But Papin says more can be done between Nissan and Renault. He expects, for example, that the next-generation Nissan Leaf and Renault Zoe electric cars will migrate to a single platform.

Separately, Papin doesn’t rule out an eventual effort by Renault to return to the U.S. market. But he sees no rush to do so. Renault’s higher priority is to expand its presence in such markets as China and India, he tells ANE.