AutoBeta(AutoBeta.net)03/27 Report--

In the face of the impact of COVID-19 's epidemic on global automobile enterprises, the remedial policies of automobile enterprises are constantly emerging. According to the French newspaper Echo on March 26, Mitsubishi Group may buy 10% of Renault as part of a plan to strengthen the restructuring of the Renault-Nissan-Mitsubishi alliance.

The plan is just one of the restructuring plans being discussed by the two sides, which may also include factory closures and cost savings, the report said. However, Renault and Mitsubishi did not comment.

It is understood that Renault and Nissan formally established the Renault-Nissan alliance in March 1999; in May 1999, Renault bought a 36.8 per cent stake in Nissan for $5.4 billion, becoming a major shareholder of Nissan and was given the right to increase its shareholding to 44.4 per cent five years later; in May 2002, Nissan acquired a 15 per cent stake in Renault. It is worth mentioning that Renault Nissan's cross-shareholding relationship is not equal. Renault owns 44.4 per cent of Nissan with voting rights, while Nissan owns 15 per cent of equity only. As a result, Renault can influence Nissan's related operations, while Nissan's impact on Renault's operations is almost negligible.

In 2016, Mitsubishi Automotive Industry Co., Ltd. announced its acquisition intention and signed a merger contract. Nissan acquired a 34% stake in Mitsubishi Motors, making it the largest shareholder of Mitsubishi Motors, with a veto in major management decisions. Mitsubishi Group has also become a member of the Renault-Nissan alliance, and Nissan CEO Ghosn has been chosen as the next Mitsubishi CEO.

Under Ghosn, the Renault-Nissan-Mitsubishi alliance sold 10.61 million vehicles in 2017, beating Volkswagen to become the world's largest manufacturer. Among them, Renault sold 3.76 million cars, Mitsubishi sold 1.03 million and Nissan sold 5.82 million. At the beginning of the collapse of the Renault-Nissan-Mitsubishi alliance, in November 2018, Nissan CEO Ghosn was arrested on suspicion of financial irregularities, which worsened the alliance, which at one point revealed the collapse of the alliance and increasingly strained relations among its members. Especially after Ghosn absconded to Lebanon, many media reported that the alliance may disintegrate.

Global car sales of the Renault-Nissan-Mitsubishi alliance fell 5.6 per cent in 2019 from 10.1552 million vehicles, from second to third in the world, according to sales data. Among them, daily production and sales fell 8.4% to 5.1762 million vehicles compared with the same period last year. Renault sales fell 3.4 per cent year-on-year to 3.7537 million, while Mitsubishi sales rose 0.5 per cent to 1.2253 million.

On February 1, the Renault-Nissan-Mitsubishi Alliance announced that it had recently reached a new framework agreement to further strengthen the business model and organizational structure. Renault Group, Nissan Motor and Mitsubishi Motors reaffirmed the importance of the alliance in strengthening their respective strategies and competitiveness, and will take measures to promote resource sharing and help the three companies achieve effective improvement in competitiveness and performance. the medium-term strategic plans of the three member companies will be announced at the same time in May 2020.

The Renault-Nissan-Mitsubishi Alliance once again reaffirmed the importance of the alliance in strengthening their respective strategies and competitiveness, which is essential for maintaining the unity and development of the alliance.

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