Renault-Nissan-Mitsubishi Alliance reports cost savings of €5.7 billion from improved cooperation

Renault-Nissan-Mitsubishi Alliance reports cost savings of €5.7 billion from improved cooperation

The Renault–Nissan–Mitsubishi Alliance has reported that as a result of closer cooperation between alliance members, annual synergies climbed to €5.7 billion (RM26.5 billion) last year from €5 billion (RM23.2 billion) in 2016, an improvement of 14%. It said that consolidation and convergence resulted in cost savings, incremental revenue gains and cost avoidance.

“The Alliance has a direct, positive impact on the growth and profit of each member company. In 2017, the Alliance turbo-charged the performance of all three companies including Mitsubishi Motors, which saw its first full-year of synergy gains,” said chairman and CEO Carlos Ghosn.

“We expect to generate growing synergies in coming years as the Alliance accelerates convergence through increased utilisation of joint plants, common vehicle platforms, technology-sharing and our combined presence in mature and emerging markets. We reaffirm our synergy goal of more than €10 billion by the end of 2022,” he added.

Engineering-based gains came from shared R&D costs and investments, while in manufacturing, shared platforms such as the Datsun redi-GO and Renault Kwid in vehicle production resulted in lower production costs. Significant cost reductions were also obtained via a more centralised sourcing of parts, equipment/tooling and common utilities for facilities around the world.

Shared spare parts warehouses between Renault, Nissan and Mitsubishi Motors in Europe, Japan and Australia also contributed to the cause, as did reduced costs associated with vehicle transportation, an example being Nissan and Mitsubishi Motors combining shipments of finished vehicles from plants in Thailand to their respective dealers.

The Alliance reported total sales of more than 10.6 million vehicles for 2017, and under its Alliance 2022 strategic plan, combined annual sales are expected to climb to more than 14 million vehicles by the end of the plan. Nine million of these will be built on four common platforms including electric and B-segment vehicles, and the use of common powertrains will be extended from one third to 75% of the total.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Nancy Tan on Jun 22, 2018 at 11:39 am

    Wow, see how clever the Japanese are. Proton took 20 years of bleeding money before they decided to join Geely. Before that, arrogant ketuanan attitude.

    Like or Dislike: Thumb up 15 Thumb down 19
    • Bullish on Jun 22, 2018 at 1:15 pm

      Its a majority French company

      Like or Dislike: Thumb up 17 Thumb down 0
      • U-Tun on Jun 22, 2018 at 1:38 pm

        Doesn’t matter whether tuan is black or white, as long as tuan is smart

        Like or Dislike: Thumb up 16 Thumb down 3
        • Yusri on Jun 23, 2018 at 3:16 pm

          I think meritocracy cannot work here. Cause it matters in Malaysia, especially in GLC

          Like or Dislike: Thumb up 0 Thumb down 1
          • Khairul Izam on Jun 23, 2018 at 11:36 pm

            Juga kat private sector. Kalau xleh speaking Mandarin, tulis Mandarin, xleh dapat keje di sana.

            Like or Dislike: Thumb up 2 Thumb down 0
          • Tido oh tido on Jun 24, 2018 at 3:23 am

            Last time Tiara and savvy were not working here , so no thanks to Renault

            Like or Dislike: Thumb up 0 Thumb down 0
    • Hahaha! Carlos is basically telling the jepunis minor lords in Nissan that he is King and their wish for divorce will meant ruination onto them. Well played, Carlos.

      Now the jepunis lords under his feet r crying and their sapoters r wailing.

      Like or Dislike: Thumb up 13 Thumb down 5
      • John Dedak on Jun 22, 2018 at 4:21 pm

        this is the same guy who told us Proton has paid off all their debts and now no more debts

        Like or Dislike: Thumb up 4 Thumb down 6
        • This is the same guy that told us P1 majority sales comes from gov fleet sales but PT burst his fake news bubble when they repoted 97.5% sales came from retail end customers.

          Like or Dislike: Thumb up 9 Thumb down 3
        • Awang Selamat on Jun 23, 2018 at 12:14 pm

          yes john, we bilip in your lies and your 3 years here as a BN cybertrroper spreading fake news and lies

          Like or Dislike: Thumb up 0 Thumb down 0
          • Yes. We belip in basher who so free to reply own dupe. Ha ha ha ha

            Like or Dislike: Thumb up 0 Thumb down 0
  • Not to mention having 1 less competitor now certainly saves much cost. That the dun wanna tell u!

    Like or Dislike: Thumb up 11 Thumb down 5
    • Bruno on Jun 22, 2018 at 12:58 pm

      “If you are real good, why should you fear of your competitor and opposition” – C.Ronaldo 2018

      Like or Dislike: Thumb up 13 Thumb down 1
      • my england is bad on Jun 22, 2018 at 2:44 pm

        If your partner is not good, how good you are pun tarak guna

        Like or Dislike: Thumb up 7 Thumb down 2
        • True bro. Messi Argies 0 – 3 Croatia

          Like or Dislike: Thumb up 4 Thumb down 1
          • kaizen on Jun 22, 2018 at 6:53 pm

            Deswai hot debat on live TV soon

            Like or Dislike: Thumb up 2 Thumb down 0
          • No need debat. Even Argie coach says he rather have the better squad that just a maestro whos not working.

            Like or Dislike: Thumb up 0 Thumb down 0
      • Well, he did join the best team and not the worst team. Otherwise it might prove his point right.

        Like or Dislike: Thumb up 5 Thumb down 3
  • Munoz on Jun 22, 2018 at 11:54 am

    Cost savings of RM26.5 Billion (€5.7billion) easily bail out 1Mdb n Ecrl.. Cekapp carlos

    Like or Dislike: Thumb up 14 Thumb down 2
  • arowana on Jun 22, 2018 at 1:01 pm

    Carlos Ghosn is a living legend, a true mastermind genius

    Like or Dislike: Thumb up 10 Thumb down 3
    • Jonn Dol on Jun 22, 2018 at 2:39 pm

      Now Mitsubishi needs a halo product, just don’t tell it’s another SUV!!

      Like or Dislike: Thumb up 2 Thumb down 4
      • Future Ready on Jun 23, 2018 at 4:59 pm

        Actually Mitsubishi is big in Thailand, Philippines and Indonesia, which collectively is bigger than the Malaysian and Singapore markets combined. So Mitsubishi doesnt need a halo product. They need good marketing and introduction of better sellable models to come to the Mal-Sing market similar to the great models they have in the Tha-Phil-Indo markets.

        Like or Dislike: Thumb up 0 Thumb down 0
      • Yea man. Most likely is another SUV. The new Mitsubishi Eclipse in SUV form

        Like or Dislike: Thumb up 0 Thumb down 0
    • 7yrsold on Jun 22, 2018 at 2:43 pm

      Sharing platform is not new in auto industry hence he is not genius

      Like or Dislike: Thumb up 7 Thumb down 6
      • Bro. To an idiot, anyone who has better intelligence would look like a genius to him.

        Like or Dislike: Thumb up 7 Thumb down 7
        • arowana on Jun 23, 2018 at 8:18 am

          reading your low class comments instantly defines how stupid you are.. showing failed people like you who never achieve anything only able to condemn other’s success.. typical loser behaviour

          Like or Dislike: Thumb up 1 Thumb down 0
          • Topkek on Jun 24, 2018 at 10:43 pm

            Eh I dun see any condemnation of talking easy there. Ironically if P1 got bashed everyday you dun say such words pulak. Ni mesti worship jepunis overlord

            Topkek

            Like or Dislike: Thumb up 0 Thumb down 1
      • arowana on Jun 23, 2018 at 8:17 am

        well.. talk is easy for you.. never see you do this kinda job? genius..

        Like or Dislike: Thumb up 1 Thumb down 0
  • Ahmadjr on Jun 23, 2018 at 1:25 am

    Proton 20 experience, last2 kerja rebadged geely je. Engine baru guna patent petronas tu apa cerita?

    Like or Dislike: Thumb up 0 Thumb down 0
 

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