Renault-Nissan-Mitsubishi aim 10 bn euro synergy by 2022

Source: The Hitavada      Date: 16 Sep 2017 11:46:06


NEW DELHI,

Sept 15,

(PTI),

FRANCO Japanese auto alliance Renault Nissan Mitsubishi on Friday announced an ambitious six-year plan under which it aims to double annual benefit from synergies to 10 billion euros by 2022. Under its Alliance 2022 plan, the three member companies aim to collectively launch 12 electric vehicle (EV) models and 40 vehicles with different levels of autonomous drive (AD) technologies.“Today marks a new milestone for our member companies.

By the end of our strategic plan Alliance 2022, we aim to double our annual synergies to 10 billion euros,” Carlos Ghosn, Chairman and CEO of the Alliance, said in a statement. He further said to achieve the target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies.

“From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at USD 240 billion by the end of the plan,” he added.The increased synergy target of 10 billion euros by 2022 follows a 16 per cent rise in synergies in 2016 to 5 billion euros. The doubling of synergies will be achieved partially by contributions from Mitsubishi Motors, specifically through deeper localisation, joint plant utilisation, common platforms, he added.