Renault-Nissan-Mitsubishi Alliance Cites Further Savings

The Renault-Nissan Alliance says its annual cost savings grew 14% to €5.7 billion ($6.7 billion) in 2017, thanks to the addition of Mitsubishi Motors Corp.

The partnership expects to boost its annual cost savings to €10 billion by 2022 as the three companies expand shared purchasing, human resources and vehicle platforms, the Financial Times says.

The group sold more than 10.6 million vehicles last year. Carlos Ghosn, who chairs all three companies, aims to strengthen the alliance this year, perhaps by revising the existing cross-ownership structure.

Currently, Renault owns 43% of Nissan. Nissan holds a 15% nonvoting stake in Renault and a controlling 34% share of MMC. FT notes that Daimler AG can be considered a minority part of the alliance too. In 2010 Renault-Nissan acquired 3% of Daimler, and Daimler bought 3% stakes each in Nissan and Renault.