Renault-Nissan, Mitsubishi Announce Electric Tie-Up

Renault-Nissan and Japanese firm Mitsubishi are to share the production of vehicles, technology and factory capacity, the two groups announced on Tuesday, highlighting the development of electric cars.

A statement on the terms of the deal said: "As a consequence, it has been agreed that the strategic cooperation between Nissan and Mitsubishi Motors could be expanded across the broader Renault-Nissan Alliance."

Renault-Nissan is the second-biggest French controlled auto-maker after PSA Peugeot Citroen which is in difficulties, is undergoing deep restructuring, and is believed to be seeking new alliances and shareholders.

Mitsubishi was for a long time interested in agreements with PSA, although since 2003 it has been cooperating in Asia with Nissan of Japan.

In 2011, the two companies created a joint company called NMKV to develop "kei cars", small cars which are highly popular in Japan.

Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Nissan Motors had also signed an outline agreement covering light trucks in Japan.

The statement said that under the new upgraded agreement between Renault-Nissan and Mitsubishi, "it is expected that the existing NMKV joint-venture company will be extended to co-develop a new small-segment car including a specific electric version that can be sold on a global basis.

"The basis for this product will be from a jointly-developed 'Kei car' platform of the type popular in the Japanese domestic market."

The two groups were also determined "to share technologies and product assets related to electric vehicles and latest-generation platforms," the statement said.

A spokesman told Agence France Presse that this meant the negotiations were now under way but that the details had not yet been worked out.

However the statement said that the two groups were thinking of developing two saloon cars based on Renault models which would be sold under the Mitsubishi name.

The first of these, a compact car, would probably be built in a Renault-Samsung factory at Busan in South Korea for the US and Canadian markets.

The chief executive of the Renault-Nissan Alliance, Carlos Ghosn said: "Nissan and Mitsubishi Motors have jointly benefited from several collaborations in the past, most recently the successful joint-venture on Kei cars in Japan.

"I welcome the direction being taken towards this broader cooperation, creating new opportunities for Renault in addition to further leveraging the productive relationship between Nissan and Mitsubishi Motors."

The president of Mitsubishi Motors Corporation, Osamu Masuko, commented: "Mitsubishi Motors is pleased to work again with Nissan and now Renault towards achieving further collaborations."

Nissan has just issued a profits warning which caused its shares to plunge on the Tokyo stock market on Tuesday.