Employees wearing protective masks against the spread of the novel coronavirus, COVID-19, work along the assembly line that produces both the electric vehicle Renault Zoe and the hybrid vehicle Nissan Micra, at Flins-sur-Seine, the largest Renault production site in France on May 6, 2020.
(Photo : MARTIN BUREAU/AFP via Getty Images)
Mitsubishi Motors Corporation, Renault SA, and Nissan Motor Co. are tightening their French-Japanese alliance with the three automakers set to triple their investment to jointly develop electric vehicles. Two persons with knowledge of the plan told Reuters of the deal, which will send shockwaves across the auto industry.
The three prominent car brands seek to deepen cooperation as the auto industry continues to shift towards electrification. They are expected to announce on Thursday, January 27, a plan to invest $23 billion (20 billion euros) over the next five years on the development of EVs.
The alliance is expected to come up with at least 30 new battery electric vehicles underpinned by five common platforms by the year 2030. Renault, Mitsubishi and Nissan have already spent huge amounts of money with regards to electrification, pouring in 10 billion euros before this latest investment, according to people with knowledge of the plan.
Nissan, Mitsubishi, and Renault to launch "Alliance to 2030" plan
The "Alliance to 2030" plan signifies intensified cooperation among the three automakers, with Nissan, Renault and Mitsubishi sharing one vision on electrification and connected mobility. According to sources, 90 percent of the electric vehicles that they are expected to develop and launch by 2030 will come from the aforementioned five common platforms.
Four of these platforms has already been developed and partly deployed by the three-company alliance. One underpins electric vehicles such as Renault's Megane EV and Nissan's Ariya. The other one underpins Renault's popular Dacia brand as well as affordable cars by Nissan and its Chinese partner Dongfeng. The remaining two platforms have been deployed for light commercial vehicles and micro minis in Japan, the sources said.
The alliance plans to deploy the fifth common platform for Renault's compact EVs by the middle of this decade. Nissan has already decided to utilize this platform to electrify its Micra compact car. Renault is expected to develop a similar EV car with this platform, which Nissan calls CMFB-EV. The launch of the Micra EV is expected to transpire by the mid-2020s, according to sources.
Related Article: Tesla Driver Faces Felony Charges in California After Deadly Crash Involving Autopilot
Alliance wants to make compact electric vehicles affordable
The main goal for the alliance with this investment is to make compact electric vehicles as affordable as gasoline-powered vehicles of similar size. To make this plan a reality, carmakers are expected to use common batteries and other key components. Sources said Mitsubishi, Renault, and Nissan plans to generate a total of 220 gigawatt hours of battery capacity by the year 2030 based on the plan.
By sharing and standardizing batteries, the three companies expect to lessen battery manufacturing costs by half. Solid-state lithium-ion battery technology will also be shared between the alliance with Nissan taking the lead in that project. Leaders of Mitsubishi, Renault and Nissan were planning to announce this joint investment for EVs last autumn but a surge in COVID-19 cases postponed the event in Japan.
READ MORE ON AWN:
Stellantis Steals Show at CES With Showcase of Chrysler Airflow EV Concept: Will They Sell This Car?
Shakeup at Tesla as Company's Top Black Executive Steps Down as HR Chief
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
