Business Essentials for Professionals


EVs Now The Lynchpin Of Nissan–Renault Partnership

EVs Now The Lynchpin Of Nissan–Renault Partnership
Electrification was described as the new lynchpin of the new partnership between Japan’s Nissan Motor Co and French car maker Renault SA, said the Japanese automaker's chief operating officer (COO) Ashwani Gupta. `
Nissan will standardise and share electric-vehicle components with Renault, Gupta said.
One of the fallouts of the arrest and ouster of former Chairman Carlos Ghosn was the straining of relationship between the partners of the Franco-Japanese alliance which also includes junior member Mitsubishi Motors Corp. However the partners found an urge to rebuild the collaboration because of the coronavirus pandemic with the companies seeking to standardise parts and platforms to cut down on costs.
Common platforms, powertrains and components are already shared by Nissan with Renault and Mitsubishi. However such efforts have "reached the maximum we should do," Ashwani Gupta, Nissan's COO, said in a media interview.
"That's why we are shifting the gear of further synergies using electrification as the main pillar," he said.
He said that sharing of batteries, electric powertrains and electronic architecture will be the focus of the partnership. Additionally, there would be significant economies of scale by adopting a uniform standard across the alliance, he added.
Since Nissan sources its components of its cars globally which will be a supply chain challenge for the alliance, Gupta said. Nissan sources batteries for its electric vehicles from China, Japan, Europe and the United States, he said.
More than 7.8 million cars were sold last year by the alliance combined which was 23 per cent lower than the number in 2019 because of the hit to their business by the pandemic.
With the global auto industry facing a transformation by fast-moving technology, the scope of the challenge facing automakers everywhere is reflected by the push to share more of the work on electric vehicles (EVs).
Volkswagen and Ford have a strategic alliance according to which the American car maker will make use of the MEB electric vehicle platform of its German partner for building some models.
On the other hand, ties and partnerships have been expanded by Toyota Motor Corp. This Japanese car maker’s partnership with Subaru Corp and Chinese battery and automaker BYD has been forged to jointly develop EVs. Two jointly developed large-sized EV models will be launched in 2024 by Honda Motor Co and General Motors which will be manufactured using GM's Ultium batteries.
The platform of its upcoming all-electric Ariya SUV will be shared with Renault by Nissan which is one of the first auto making companies of the world to embrace fully electric powered vehicle development and production with its Leaf model.
For all EVs, batteries are one of the costliest components and raw materials for batteries make up the bulk of their costs. But development of batteries for EVs has been one of the weaker points of the more than 20-year alliance as the largest two partners - Nissan and Renault, continue to source batteries separately.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc