A new report from the Financial Times indicates that Renault may produce Mitsubishi cars in one of its French plants. Such a move would seemingly be in contradiction of previous plans to stop selling Mitsubishi cars in Europe.
Nissan bought a 34% stake in the ailing Mitsubishi, after they found the latter had provided inaccurate fuel efficiency data. The acquisition added another company to the Renault-Nissan alliance that was already in place, forming the Renault-Nissan-Mitsubishi partnership.
A large-scale restructuring was announced in the wake of the global economic downturn and struggling sales for Mitsubishi. Dubbed the “Small But Beautiful” plan, it was a part of an Alliance-wide rethink designed to weather the drop in global automotive demand. The proposal would see companies focus on their strongest markets and exit those where they were weak.
This saw Mitsubishi announce a freeze on all new European model introductions, where they had around 1% market share. Instead, Mitsubishi would concentrate their efforts on the South Asian market, where the brand has seen success and models such as the now-departed Pajero/Montero are held in high regard.
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But according to the Financial Times, which cites sources with direct knowledge of the matter, management is now considering a reversal. It states that Mitsubishi is considering using Renault’s underutilized facilities in France to continue production while keeping the brand present in Europe.
It’s of note that some Mitsubishi models have proved to sell well in Europe. The Outlander PHEV was the best-selling Plug-in Hybrid, and the Mirage/Space Star continues to deliver in adequate numbers. The new generation Outlander, revealed last week, is the first Mitsubishi built on a Nissan platform. Sharing underpinnings and many interior elements with the Nissan Rogue, it’s a clear indication to cut costs via platform sharing.
Such a move would fall in line with a plan to increase cooperation across the three companies, as well as harness the potential of Renault’s factories. The French car manufacturer is already shedding thousands of jobs in France. Renault’s CEO Luca de Meo has previously stated his intention of increasing capacity at their factories, which is currently operating at an average of 70%.
According to AutoNews Europe, Mitsubishi stated that the decision to freeze European new car development remains in place, while Renault’s spokesperson denied commenting on “speculation.”