Following approval by the Boards of Directors of Renault Group and Nissan Motor Co., Ltd, Renault-Nissan-Mitsubishi Alliance earlier this week announced new initiatives to take their partnership to the next level.
A three-dimension program to maximize value creation for all Alliance stakeholders will include:
Renault Group and Nissan have entered into a binding framework agreement regarding the above- mentioned transactions, with a view of reaching definitive agreements by the end of the first quarter of 2023. The transactions contemplated in these definitive agreements would be subject to a limited number of conditions precedent, including regulatory approvals, and completion is expected to occur in the fourth quarter of 2023.
This far-reaching program paves the way for a renewal and strengthening of the 24-year partnership, creating a new agile spirit and harnessing the pioneering technologies of all three Alliance members. This next level will create more growth opportunities and help secure operating efficiencies for each Alliance company to innovate and transform in the fast-changing market for automotive products and mobility services.
A year after defining the Alliance roadmap towards 2030, the companies announce consideration of new key projects in Latin America, India and Europe that aim to deliver win-win, large-scale and actionable benefits for the Alliance members along three dimensions: markets, vehicles, and technologies. Each company would benefit from these value-creating projects in the mid-term while realizing short-term benefits from both cost sharing and cost avoidance.
The four projects to be considered in Latin America include:
The companies are exploring the following initiatives in Europe:
In Europe, the scope of collaboration would go beyond the vehicles to cover lifecycle from distribution, to usage, to recycling and end-of-life.
In the second area of enhanced cooperation, all three Alliance companies agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.
These agile strategic initiatives are designed to complement the business plans of member companies, including Nissan Ambition 2030 and Renaulution, as each business leverages commonality and investment opportunities to deliver on their respective goals for sustainable growth and targets for decarbonization.
The areas of collaboration under consideration include:
These initiatives would complement ongoing areas of technology collaborations such as All Solid-State Battery (ASSB), Software-Defined Vehicle (SDV) and Advanced Driver Assistance Systems (ADAS) & autonomous driving.
As each Alliance member company delivers on its business plans, it was important to put in place a cross- shareholding structure and governance terms aligned to the goals of the next-generation Alliance. Whilst previous Alliance agreements enabled the companies to execute their respective strategies over the last 24 years, a new approach is required to enable the Alliance members to best prepare for future industry opportunities.
Renault Group and Nissan, the founding-members of the Alliance, have therefore agreed to rebalancing their cross-shareholding and governance terms to ensure effectiveness and maximize value creation.
A binding framework agreement defines the principles of a new governance scheme and the rebalancing of the cross-shareholdings between Renault Group and Nissan. The two companies intend to enter into a new Alliance agreement [by March 31, 2023] and replace the current agreements governing the Alliance (i.e., the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement and the Memorandum of Understanding of March 12, 2019).
This new Alliance agreement would be put in place for an initial period of 15 years.
Nissan launches first-of-its-kind Patrol 8 Adventures series in the Middle East
Biannual Automechanika Dubai Network gathers regional automotive experts to highlight the role of remanufacturing in the circular economy
Mercedes-Benz VISION EQXX, the Record-Breaking Icon, to Showcase at LEAP 2024 in Riyadh, Saudi Arabia
CZINGER VEHICLES GROWS ITS INTERNATIONAL FOOTPRINT AS IT PARTNERS WITH AL HABTOOR MOTORS FOR DISTRIBUTION OF ITS GROUNDBREAKING 21C IN THE MIDDLE EAST
FIRST BESPOKE LIMITED EDITION IN INDIA CURATED BY BENTLEY MULLINER
© 2023 Tires and Parts News Resource. All Rights Reserved.