Update for the New Renault-Nissan-Mitsubishi EV Company

In May 2022, Renault announced that it was ready to take the production of electric vehicles (EVs) in a new direction. Leading the Renault-Nissan-Mitsubishi Alliance, Renault announced a new strategy to streamline EV development by creating a new EV company to take over. Nikkei Asia, the Renault automaker CEO, Luca de Meo, confirmed the interest of the other two partners in the Alliance, but more so presented the idea to Nissan and Mitsubishi Motors Corp (MMC). All three partners would need to make a heft investment to start a new subsidiary and build a new EV plant. Half a year later, and here’s where the two automakers stand.

The plan is to split internal combustion engine development and EV production into two separate entities. With 70-percent of key EV components shared between companies in the development of EVs, the Alliance will continue to develop gasoline-powered vehicles on the side, but plans to launch 35 new EV models over the next eight years needs to take precedent. In terms of partners, Renault and Nissan Motor Co. have cross-shareholdings in each other, and Nissan has a controlling 34-percent stake in Mitsubishi Motors, looping it into the Alliance. However, Renault and Mitsubishi don’t share holdings, which makes the Japanese automaker a little shaky in a new investment.

So far, Nissan has considered making an investment into the new EV subsidiary, code-named Ampere. In fact, the automaker is thinking about taking up a 15-percent stake of the Ampere. Although Nissan is more or less sold on the idea, that doesn’t mean Mitsubishi Motors automatically joins up, despite the holdings Nissan has within the company. CEO Takao Kato is considering possible participation with Ampere, but has not yet revealed plans of how much of an investment the automaker will make. Kato does know that becoming a part of Ampere and producing EVs will be an essential part of staying in the market past gasoline internal combustion engine models.

This goes double for the U.S. market. Mitsubishi has an EV minicar co-developed with Nissan in Japan , and will continue to release gasoline engine models with Renault in Europe. In North America, Mitsubishi continues to introduce new versions of its Outlander PHEV, and many concepts have surfaced in recent years. Later this decade, more electrified offerings will enter the U.S. market according to Executive Vice President Hiroshi Nagaoka. That is what the automaker needs to keep afloat and active.

“We won’t be able to do business in the U.S. unless we introduce models including BEVs…We are now working out plans for that, and we are aware we have to offer a broader range of electrified vehicles.” – Nagaoka

With the current sales for Mitsubishi Motors North America over the last three quarters of 2022, from Q1 – Q3, the automaker has seen a 20.5-percent increase as opposed to 2021, and a 43.3-percent increase in sales from January to September 2022. A lot of that is thanks to the new generation Outlander and the Outlander PHEV, recently released with a new upgraded model. Mitsubishi can’t rely on its PHEV entry forever, so joining Ampere and bringing EVs to the U.S. is obviously the next move. What are your thoughts on this? Join the discussion on Miami Lakes Automall social media .

Photo Source/Copyright: Renault-Nissan-Mitsubishi Alliance

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