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Renault-Nissan Alliance jointly announces $ 26 billion EV plan

Renault and Nissan have outlined a joint investment in electrification as part of a € 23 billion promotion to bring the embarrassed French-Japanese alliance closer together as competition intensifies.

The two companies said Thursday that the funds already announced separately by automakers last year will be spent on shared manufacturing platforms, batteries, and operating systems for more than five years. Nissan will lead the development of all-solid-state battery technology, and Renault plans to launch a “software-defined” vehicle by 2025.

“These are large investments that none of the three companies can make on their own,” Renault Chairman Jean-Dominique Senard said in a statement.

The plan represents a step towards a tripartite alliance, including Mitsubishi Motors, which is still looking to rebuild after the fall of Carlos Ghosn, the architect and leader of the alliance, which is about to collapse.

Competition has intensified after Renault and Nissan burned early EV trails with the best-selling Zoe and Leaf models, and the vehicle has made great strides with Tesla and Volkswagen models.

As part of the promotion, the alliance will reduce the number of models from the current 100 to 90 and increase the commonality from 60% to over 80% by 2026.

By the end of the decade, the alliance aims to have 35 electrical models with 90% platform commonality.

The alliance also plans to announce a fifth EV platform in addition to the four already developed. In addition, the next-generation Nissan Micra hatchback will be an EV produced in France, the two companies said.

Roadmap

Launched in 1999, the Alliance’s latest roadmap focuses on practical ways for automakers to pool resources, despite the remaining cross-shareholding alliance imbalances.

Renault owns a 43% stake in a major Japanese company with voting rights, and Nissan owns a 15% stake in Renault and has no voting rights. This was a source of unresolved tensions between partners, but their main focus is to improve the operation of the alliance.

In November, Nissan outlined its $ 2 trillion ($ 17.5 billion) investment in EVs and batteries, including 15 new electric models in Yokohama and a pilot plant for all-solid-state batteries.

In June, Renault planned a € 10 billion EV bet on battery supplies, powertrains, and new models. By 2025, we plan to introduce 10 new battery-powered vehicles, including the profitable SUV segment.

Both Nissan and Renault are working on a turnaround plan, spending € 2 billion on a battery plant near Renault’s car plant in Douai, France, and a Nissan plant in the United Kingdom.

“Leader follower”

The Alliance finally outlined a common strategy in May 2020 in the form of a “leader-follower” system. In this system, each company occupies the driver’s seat in a particular area, and some technologies occupy the backseat. The plan does not fully accept Renault’s attempt to build its own path in China.

Maintaining partnerships has become more difficult due to pandemic travel rules, which have largely prevented top executives from meeting in person. Rival car makers Fiat Chrysler and PSA Group merged last year to form Stellantis, Europe’s second largest car maker, also adding pressure.



https://gulfbusiness.com/renault-nissan-alliance-unveils-joint-26bn-ev-plan/ Renault-Nissan Alliance jointly announces $ 26 billion EV plan

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