07 June 2014

Renault/Nissan Want In On Top Three Spot

The Nissan Juke & Renault Captur 

The top three car makers, Toyota, GM and VW Group are a clear top three in car making numbers. They are all about or close to 10 million vehicles made in 2013. Back some way is the Renault/Nissan Alliance at just over 8 million.

When the Alliance was formed in 1999, it was Renault that was the stronger. Nissan then became the more successful of the two and outsells the Renault side by about 2 to 1. It is now more profitable too. Renault has been going through a period of improving its business and that has gone well. Now the CEO Carlos Ghosn feels the time is right to mount an assault on the top three. Will it succeed?

They seem to have been slow about sharing many of the costs. That seems to be something that is being developed. In January 2014 the Alliance spoke of greater integration. For example, Nissan taking the lead in engineering and manufacturing, while Renault will do likewise with purchasing and human resources. Better late than never I suppose.

So in answer to whether a top 3 spot is realistic, it could be but it will be hard work. As the R/N Alliance improves its business model, so will the top three be ever looking to do things better too. It is nice to have goals, but doing your job well and being profitable is the key. Then where you end up in the pecking order will take care of itself.

Both Alliance partners are into electric, with Nissan the more successful

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