ALLIANCE NEW COOPERATION BUSINESS MODEL TO SUPPORT MEMBER-COMPANY COMPETITIVENESS AND PROFITABILITY

The member companiesplan to build on existing Alliance benefits in areas such as joint purchasing byleveraging their respective leadership positions and geographic strengths tosupport their partners’ business development.

“The Alliance is a unique strategicand operational partnership in the automotive world and gives us a strong edgein the ever-changing global automotive landscape,” said Jean-Dominique Senard,Chairman of the Alliance Operating Board and Renault. “The new business model will enable the Allianceto bring out the most of eachcompany’s assets and performing capabilities, while building on theirrespective cultures and legacies. The three companies of the Alliance will cover allvehicle segments and technologies, across all geographies, for the benefit ofevery customer, while increasing their respective competitiveness, sustainableprofitability and social and environmental responsibility.”

The leaders of the threecompanies have endorsed the principles of the leader-follower scheme forvehicles, in which they will cooperate to:

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The leader-follower scheme is expected todeliver model investment reductions of up to 40% for vehicles fully under the scheme.Those benefits are expected to come in addition toconventional synergies that are already delivered today.

The Alliance also endorsed the principle of naming different parts ofthe world as “reference regions,” with each company focusing on its coreregions with the aim to be among the most competitive and to serve as areference for the others to enhance their competitiveness.

Under this part of the scheme, Nissan will be the reference for China,North America and Japan; Renault in Europe, Russia, South America and NorthAfrica; and Mitsubishi Motors in ASEAN and Oceania.

Witheach company becoming a reference company in respective regions, the opportunitiesfor sharing will increase to maximize fixed cost sharing, as well as leveragingeach company’s assets.

Thecompanies’ product portfolio updates will follow the leader-follower scheme,and leader and follower vehicles will be produced using the most competitivesetup. For instance:

···Withall of the above taken together, close to 50%of Alliance models will be developed and produced under the leader-follower schemeby 2025.

Interms of technology efficiency, the Alliance members will continue their capitalizationof existing assets to ensure that each member company continues to share theinvestment in platforms, powertrains and technologies. This sharing has provenits efficiency in powertrain and platform development and enabled thesuccessful launch of the CMF-B platform for the Renault Clio and Nissan Juke, aswell as the kei car platform for the Nissan Dayz and Mitsubishi eK Wagon. The CMF-C/Dand CMF-EV platforms will follow soon.

Theleader-follower scheme will be extended from platforms and powertrains to allkey technologies, with leadership assigned as follows:

·····PHEV for C/D segment: Mitsubishi

Thisnew business model will enable members companies to bring out the most of theirexpertise and competitiveness to reinforce the Alliance as a whole in aradically changing global automotive environment.

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