Renault, Nissan Motor and Mitsubishi Motors announced Wednesday the details of a new strategic plan in which they pledged to deepen cooperation in the development and production of cars, to maintain continuity as a car manufacturer.
The three companies are facing a crisis caused by the Corona pandemic, which came while they are trying to reformulate their partnerships after the arrest and dismissal of the group's chairman, Carlos Ghosn, in 2018.
The reformulated coalition will focus on more systematic sectors of work, with one company focusing on a specific type of vehicle and geographic scope, while the other two will follow suit.
The goal was to create the largest auto maker by 2022, when Renault, Nissan Motor and Mitsubishi announced their latest strategic plans for the alliance in September 2017.
Prior to the announcement of the plan, an informed source, speaking on condition of anonymity, told Reuters: "There will be a restructuring, there will be reductions in fixed costs, and a number of projects will be cut."
And with the profits of the three companies declining, thousands of jobs will be threatened, as Renault and Nissan will announce separate restructuring plans this week.
A source close to Renault said, "The plan will have a positive spirit and be based on a clear leader and follower plan, and it depends on the integration of companies."
One of the important questions related to the location of the German company "Daimler" in the alliance, as it joined the French-Japanese partnership in 2010, and pledged to rationalize the costs for buses, small engines and trucks in the future.
But the joint ventures have become few and far between.
The head of the alliance, Jean-Dominique Sinar, said earlier this year that companies "have no choice" but to deepen cooperation.
But senior sources in the alliance say that any talks on a comprehensive merger are now deferred.
By ... Nadeemy Haded