Renault Chairman Jean-Dominique Senard (C) speaks as Renault interim CEO Clotilde Delbos (L) and Nissan Motors President and CEO Makoto Uchida stand beside him during their joint press briefing on the Renault-Nissan-Mitsubishi alliance in Yokohama, Kanagawa prefecture on January 30, 2020.
(Photo : STR/JIJI PRESS/AFP via Getty Images)
The French-Japanese alliance of Renault, Nissan, and Mitsubishi plan to spend $25.8 billion (€23 billion) over the next five years to develop electric vehicle technology, the automakers announced on Thursday, January 27.
The three companies will share auto parts, technology, and research to reduce costs and aim to produce 35 new EV models by the year 2030. The alliance will develop five new platforms as part of its 'smart differentiation' strategy to achieve that lofty target.
These platforms will be shared across the three brands with 80 percent common usage. The affordable CMF-AEV platform is the base for Renault's budget Dacia Spring model. The LCV platform is designed for commercial vehicles like the Nissan Town Star and Renault Kangoo, while the mini-vehicle KEI-EV platform will serve as the base for ultra-compact electric vehicles.
Alliance to use CMF-BEV platform for electric vehicle push
The group currently uses the CMF-EV platform for crossovers like the Renault Megane E-Tech and Nissan Ariya. Last but not least is the CMF-BEV platform, which the alliance will use for compact EVs. This platform promises to slash costs by 33 percent and consumption by 10 percent compared to the current Zoe model of Renault.
The Alliance expects great things from this platform, with the CMF-BEV serving as the base for around 250,000 vehicles under the Nissan, Renault, and Alpine brands per year. Among the cars that will utilize this platform are the Renault R5 and Nissan's much-awaited EV replacement to the Micra.
Nissan teased that electric car in a separate press release, with COO Ashwani Gupta describing the vehicle as a great example of the Alliance's 'smart differentiation' approach. Gupta said that the all-new model would be designed by Nissan, while Renault would handle the engineering and manufacturing of the vehicle.
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Alliance looks to stop Tesla's dominance in the EV market
The alliance is critical for the three automakers to save costs amidst COVID-related supply chain issues. A lingering computer chip shortage has affected the entire auto industry, making coordination between Renault, Nissan, and Mitsubishi more urgent and important than ever.
Tesla has proven to be a strong and powerful competitor in the EV market, with Elon Musk's company posting record profits last year. Other rival automakers are also making a big push with their EV plans, including Toyota and General Motors. Even Sony Corp. is looking to grab a share of the lucrative EV market, with the company recently showing a prototype of an electric car.
According to Nissan Chief Executive Makoto Uchida, the Renault-Nissan-Mitsubishi alliance will benefit from sharing components, production facilities, and research. Uchida added that the group would also benefit from their people's shared experience and expertise, which is the most important thing for him.
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