Renault-Nissan-Mitsubishi Alliance Vows to Double Cost Savings

The Renault-Nissan alliance says new synergies will enable it to save €10 billion ($11.9 billion) by 2022, double its previous target, under its new 6-year plan.

CEO Carlos Ghosn says the addition of Mitsubishi Motor Corp. to the group (marked by the debut of a new alliance logo) will aid the alliance’s ability to lower costs. The unconsolidated three-company alliance outsold Volkswagen and Toyota in the first half of 2017 to be the world’s largest carmaking group.

The alliance’s new targets aim for combined production of more than 9 million vehicles that share four common platforms and an increase in the proportion of shared powertrains to 75% from 33% of total sales volume.

Ghosn says the expanded alliance expects its combined sales will surpass 14 million units and reach $240 billion in revenue by the end of the 6-year period.