Nissan alliance to launch midsize electric vehicles by 2020

Nissan Motors alliance with Renault of France and Mitsubishi is trying to boost its  lagging sales in Southeast Asia, various fiscal,marketing and technical cooperation are being sorted out to give big leap inits sales of cars in region of South Asia. Electric car innovation work is in progress and as per media reports the midsize electric vehicles will be launched by 2020.

Renault-Nissan Alliance stands as number three among, top 10 biggest car manufacturers in the world in 2018, Chairman of Nissan-Renault-Mitsubishi signals focus on lowering prices and Electric car range issue has been solved, says Ghosn.


Nissan Motor will deepen ties with Mitsubishi Motors through such steps as rolling out each other’s vehicles.

Mitsubishi Motors on Tuesday held an opening ceremony for a plant in Indonesia that is expected to supply multipurpose vehicles to Nissan starting as early as 2019. MPVs, commonly known as minivans, are widely popular in Indonesia.

The 65 billion yen ($585 million) plant, located in Bekasi regency in the province of West Java, is operated by a joint venture of Mitsubishi Motors, trading house Mitsubishi Corp. and a local partner and has an annual output capacity of 160,000 units.

The factory will initially churn out 30,000 units of Mitsubishi Motors’ Pajero Sport sport utility vehicle. It will also produce 80,000 units of an MPV to be released as early as this fall. The Colt L300 commercial vehicle will also be made.

The plant’s output is expected to reach 140,000 units a year. With the remaining capacity, Mitsubishi Motors will be able to supply Nissan, President Osamu Masuko said.

Nissan, for its part, may produce Mitsubishi Motors vehicles, said Carlos Ghosn, chairman of both automakers. Nissan became the largest shareholder of Mitsubishi Motors last year by taking a 34% stake.

Nissan has been struggling in Southeast Asia. Its Asian sales, including the Oceania region, accounted for just 6% of its global total of 3.99 million vehicles in the April-December period.

Family-oriented MPVs make up 70% of the new-car market in Indonesia, while low-cost green cars represent just shy of 30%. Lacking an attractive MPV offering, Nissan holds a mere 4.2% market share in the country, trailing Mitsubishi Motors’ 6.6%.

Top 10 biggest car manufacturers in the world in 2018:

1. Volkswagen Group

2. Toyota

3. Renault-Nissan Alliance

4. General Motors

5. Hyundai-Kai

6. Ford

7. Honda

8. Fiat Chrysler Automobiles

9. Suzuki

10. PSA Group

Nissan Motor’s alliance with France’s Renault and new partner Mitsubishi Motors generated 5.7 billion euros ($6.71 billion) in synergies in 2017, as the automakers combined procurement and development operations.

The alliance’s impact grew 14% from the 5 billion euros seen in 2016. Nissan alone gained 3.1 billion euros in cost savings and increased revenues. Renault reaped 2.3 billion euros in benefits. And Mitsubishi enjoyed 300 million euros in savings and revenues during its first full year in the alliance. Nissan acquired a 34% stake in its smaller peer in October 2016.

The trio is aiming for more than 10 billion euros in synergies by the end of 2022.\

Collaboration on procurement and the integration of the automakers’ research and development operations reduced costs across the board. The companies have also begun sharing warehouses for repair parts in Europe, Japan and Australia. Nissan and Renault’s sales financing operations now offer auto loans and other financial services for Mitsubishi.

Nissan and Renault have adopted common vehicle platforms, slashing development and production costs. The Japanese partner makes Renault vehicles at its plants in Mexico and elsewhere, raising efficiency in production. In Thailand, Nissan has teamed up with Mitsubishi to more cheaply transport cars from the factory to dealerships.

All three companies plan to jointly develop a platform for midsize electric vehicles by 2020, and to launch a $1 billion venture capital firm.

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