North East carmakers will benefit from electric alliance

Apr 8 2010 by Karen Dent, The Journal

THE development of electric cars in the North East is set to benefit from an international deal between Nissan, its French partner Renault and German motor giant Daimler.

The Renault-Nissan Alliance, which was created in 1999, is taking a 3.1% stake in Daimler and the German company will receive a 3.1% stake in both Nissan and Renault, as part of a collaboration which will see the three companies sharing technology and development costs.

The deal aims to make all three firms more efficient, competitive and cost effective following the savage effects of the recession on the global new car market.

Renault-Nissan Alliance chairman, Carlos Ghosn, said: “This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilising all available resources and developing the innovative technologies required in the coming decade.”

Daimler chairman and head of Mercedes-Benz, Dr Dieter Zetsche, said the three companies’ skills complemented each other and collaboration would start immediately.

He said: “Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO² footprint, both on a long-term basis.”

Motor expert Prof Mike Sweeney said the tie up would have major repercussions on the future of the car industry and Nissan’s Sunderland plant.

“This is a powerful strategic move,” said Prof Sweeney, Emeritus Professor of operations management at Cranfield University School of Management.

“Because this is such a big strategic agreement, encompassing all sorts – equal shareholding in each other’s companies and joint development programmes – it will have been discussed for some considerable time, at least a year.

“It’s an economic decision because they are trying to get economies of scale.

“It is a volume and cost issue but essentially, it’s thinking about ways they can develop more economic products for the market in the next three to four years.”

And Prof Sweeney said Daimler’s expertise in small electric car technology would have positive future repercussions for Nissan in Sunderland, which was chosen last month to manufacture the new LEAF electric car.

“Daimler has been working on an electric drive system for some time now and they have quite a considerable amount of experience in that,” said Prof Sweeney.

“It’s the small car that Daimler has been working on – the electric version of the Smart car. There will be benefits [for Sunderland].

“Nissan-Renault have been doing the same. There will be joint collaboration on the electric car drive systems.

“That collaboration on research and development for the future and combination of expertise will be mutually beneficial. The drive system in the Smart car uses the rear wheels – who knows what design collaboration will result from this?”