PARIS – Renault SA said on Thursday it would launch an initiative to help its alliance with Mitsubishi Motor Corp. and Nissan Motor Co. reach its medium-term goals, including closer cooperation in purchasing and supply chains, according to a report from Dow Jones.
The alliance will speed up convergence in areas of purchasing, engineering, manufacturing and supply chains, Renault said.
As part of the plan, Mitsubishi will join the cooperation’s purchasing, business development, and quality and customer satisfaction organizations in April 2018, Renault said.
Mitsubishi will move toward full participation in engineering, manufacturing, and supply chain and aftersales in 2019, according to the Dow Jones report.
The alliance is a partnership aimed at increasing competitiveness through collaboration and synergies.
With Mitsubishi on board last year, the alliance sold 10.6 million vehicles worldwide.
The alliance announced its mid-term plan for 2022 last September to increase annual synergies to more than 10 billion euros ($12 billion), up from 5 billion euros in 2016.
Additionally, member companies are forecasting sales of 14 million units.