Renault-Nissan-Mitsubishi has announced the launch of multiple projects to accelerate convergence in operational areas including Engineering, Manufacturing, Purchasing, Quality & Total Customer Satisfaction (TCS), Aftersales and Business Development.

The initiative comes four years after Renault and Nissan, the founding members of the Alliance, converged their activities in areas such as Engineering, Manufacturing & Supply Chain Management (SCM).

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It follows the announcement last year of the Alliance 2022 mid-term plan targeting increased annual synergies of more than EUR10bn (US$12bn) by the end of the plan, up from EUR5bn in 2016.

Additionally, Alliance member companies are forecasting sales of 14m units by the end of the plan, compared to 10.6m in 2017.

“We are accelerating convergence to support our member companies with rising synergies,” said Alliance chairman and CEO, Carlos Ghosn.

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“The Alliance will turbo-charge the performance and growth of its member companies, while preserving the autonomy and distinct strategies of Renault, Nissan and Mitsubishi Motors.” 

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Alliance project leaders have been appointed to identify new synergies and reinforce convergence. They will focus on optimising revenues and global spending, maximising areas of commonality; sharing technologies and resources and simplifying decision-making processes.

The projects are expected to lead to a new organisational structure to be reviewed and finalised following consultations with appropriate employee representatives. Detailed project recommendations will then be submitted to the corporate decision-making bodies of Renault, Nissan and Mitsubishi Motors.

This process is expected to lead to the implementation of the convergence plan beginning 1 April this year.

When the projects are finished, it is expected Mitsubishi Motors will join the Alliance Purchasing, Business Development, Quality & TCS organisations next month.

Mitsubishi will then gradually move towards full participation in Engineering, Manufacturing & SCM and Aftersales starting in 2019.