Nissan is swinging for the fences again.
After completing its global Power 88 business plan, the Nissan-Renault-Mitsubishi Alliance just revealed its next strategic step for worldwide automotive success.
Called Alliance 2022, the six-year plan has set a new target to double annual synergies to €10 billion by the end of the plan.
Carlos Ghosn, chairman and chief executive officer of the Alliance, said it marks a new milestone for the member companies.
“By the end of our strategic plan Alliance 2022, we aim to double our annual synergies to €10 billion. To achieve this target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies,” he said.
“From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at $240 billion by the end of the plan.”
Under Alliance 2022, the member companies will increase their use of common platforms, with 9 million units based on four common platforms.
The plan will also extend the use of common powertrains to 75 percent of total sales.
Alliance 2022 plans a major expansion in shared electric vehicle technologies, alongside the development and deployment of advanced autonomous drive systems, vehicle connectivity and new mobility services.
A total of 12 new zero-emission electric vehicles will be launched by 2022 using new common electric vehicle platforms and components for multiple segments.
Over the same period, 40 vehicles will be introduced with different levels of autonomy, all the way to fully autonomous capability. Becoming an operator of robo-vehicle ride-hailing services is a major part of the new mobility services strategy, the company reported
“This plan will boost the growth and profitability of our member companies. We intend to deliver on growing synergies, with three autonomous companies cooperating with the efficiency of one,” Ghosn added.
This year, Renault, Nissan and Mitsubishi Motors became the world’s largest automotive group by sales volume. In the first half of 2017, volumes increased by seven per cent year-on-year to 5.27 million units. At the same time, aggregate sales of electric vehicles reached a combined total of more than 500,000 units.
Total unit sales by the member companies are expected to exceed 14 million vehicles per year by the end of the plan. Combined financial revenues are forecast to reach $240 billion by the end of the plan, up more than 30 per cent on the $180 billion aggregate revenues achieved in 2016.
The increased synergy target of €10 billion by the end of the plan follows a 16 per cent rise in synergies in 2016 to €5 billion. The doubling of synergies will be achieved partially by contributions from Mitsubishi Motors, specifically through deeper localization, joint plant utilization, common vehicle platforms, and an expanded presence in mature and emerging markets.
Additional synergies are expected from light commercial vehicles (LCV), aftersales and technology-sharing in electric vehicles, autonomous drive, connected cars and new mobility services. This will complement synergies from existing converged functions in engineering; manufacturing engineering and supply-chain; purchasing and human resources.
Alongside the three technology building blocks, the member companies will extend their use of shared common platforms and powertrains. In 2022, more than 9 million vehicles will be built on four common platforms, up from 2 million vehicles on two platforms in 2016.
By the end of the plan, the member companies will share 22 engines out of a total of 31, compared with 14 engines out of a combined total of 38 in 2016.
The common platform strategy – based on the Common Module Family (CMF) architecture – will be extended to a new common EV platform with advanced autonomous drive capability and to a new B-segment common platform for mid-sized vehicles.
Mitsubishi Motors will gain access to the CMF architecture and utilize common powertrains by 2020.
The detailed strategy also seeks to further the Alliance’s claim to being the “original pioneer” and “global leader” in pure EV sales.
By 2022, the member companies will significantly increase their product range to cover all main segments in their key markets of Japan, the USA, China and Europe.
The electrification building block will involve common, scalable EV platforms for multiple segments by 2020, with a forecast that 70 per cent of EV volumes will be based on shared platforms by 2022.
A new family of EV motor and batteries are set to be introduced from 2020, shared across the member companies that will power 12 new pure electric vehicles to be launched by 2022.
Nissan said its EVs would boast more than 600km of range by 2022, based on NEDC homologation methodology.