Nissan-Renault alliance to share more parts, technology

auto alliance of Nissan and Renault said Wednesday it will be sharing more vehicle parts, techlogy and models to save costs as industry struggles to survive coronavirus pandemic.

Alliance Operating Board Chairman Jean-Dominique Senard said group, which also includes smaller Japanese automaker Mitsubishi Motors Corp., will have each company focusing on geographic regions.

He stressed alliance needs to just to “unprecedented ecomic crisis,” to pursue efficiency and competitiveness, t sheer sales volumes.

“w is time to rebuild,” Senard said, making clear he believed alliance remained strong.

All automakers are suffering from pandemic, and scaling back or suspending production, but Nissan was reeling before crisis struck from a scandal involving its former chairman, Carlos Ghosn.

Yokohama-based Nissan is due to report its annual results on Thursday and has forecast it will slip into its first yearly loss in 11 years.

Under latest initiative, Nissan Motor Co. will focus on China, rth America and Japan; Renault on Europe, Russia and South America and rth Africa, and Mitsubishi on Souast Asia and Oceania, for benefit of entire alliance.

Nissan Chief Executive Makoto Uchida said alliance planned to pursue fiscal strength toger.

“ synergy is huge,” he said.

Vehicles sharing same platform will double by 2024, saving 2 billion euros ($2.2 billion), according to Senard.

shared techlogy will also include electric cars and automous driving, platforms and car bodies, executives said. Nissan is a leer in electric cars with its Leaf, but such techlogy will be available to or alliance members, y said.

Renault owns 43% of Nissan, while Nissan owns 15% of Renault. government of France owns 15% of Renault.

France’s government anunced on Tuesday a bailout of more than 8 billion euros ($8.8 billion) for nation’s auto industry. A 5-billion-euro ($5.5 billion) French government loan guarantee is under discussion for Renault. measures include subsidies to encour people to buy low-emissions models.

Analysts say automakers, including Nissan, need to slash costs.

“Car companies find mselves in extraordinary times right w due to COVID-19 crisis and impact of lockdowns and ecomic recession on sales. A key me emerging in companies’ response to crisis is need to focus on core and profitable activities,” said David Leggett of analytics company Globata.

Nissan's brand suffered from arrest of Ghosn in vember 2018 on suspicion of various kinds of financial misconduct, including under-reporting promised compensation and misusing Nissan money.

Ghosn h been sent in by Renault in 1999, to save Nissan from brink of bankruptcy. He insisted on his incence from start and accused some at Nissan of concocting allegations to block a merger with Renault.

Preparations were underway for a courtroom showdown when Ghosn fled to Leban while out on bail in late 2019. Brazilian-born Ghosn holds Lebanese citizenship and Leban does t have an extrition treaty with Japan.

U.S. authorities recently arrested two Americans accused of helping Ghosn escape, reportedly by secreting him in a box for musical instruments flown in a private jet. Japanese prosecutors issued arrest warrants for m last year and are seeking ir extrition.

Before his downfall, Ghosn was a revered figure in auto industry, especially in Japan, where he was a corporate superstar.