Nissan, Mitsubishi, Renault reportedly agree to form new company for R&D of advanced automotive technologies

French automaker Renault Motor Corp and Japanese car giants Nissan and Mitsubishi reportedly have agreed on an alliance to form a new company that will solely focus on the research and development of advanced automotive technologies.

The three companies are reportedly planning to make an announcement in January, per a report in Kyodo. The new alliance is in a bid to strengthen the relationship among the three companies which had somewhat been damaged since the arrest and departure of the former alliance supremo Carlos Ghosn.

Alliance aimed at building stronger relationship

Renault Pixabay

The aim of the alliance is to appoint a general secretary at the top of their partnership to boost joint operations and cooperation among the three car giants.

Understandably, Renault doesn't want to lose any further time and plans to rebuild it relationship with its Japanese partners Nissan and Mitsubishi and make a comeback with renewed vigor.

Nissan appointed a new leadership team on Sunday, led by Makoto Uchida. The 53-year old Uchida was in-charge of Nissan's business in China.

Mitsubishi too has been on the lookout for a new chief executive. It already has installed Clotilde Delbos to head the finance on an interim basis, according to Reuters.

Scandal disrupted projects

Mitsubishi Pixabay

Renault's relationship had somewhat soured with its Japanese partners since the arrest of chief executive officer Carlos Ghosn in Tokyo last year on charges of corruption and financial misconduct. However, Ghosn has since then denied the charges.

The scandal put a halt to a number of efforts to start new projects and disrupted cost saving plans as both Renault and Nissan shook up their respective teams in a bid to stabilize their business.

Ghosn's arrest and the shaking up of the teams came at a time when global automakers had already started feeling the heat of slowing new car sales.

Renault now without wasting time wants to strengthen its relationship with both Nissan and Mitsubishi.

According to reports, the new head is most likely to report to the Alliance Operating Board and the group CEOs unlike it used to happn when Ghosn was at the helm of affairs and exercised most of the power.