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Morningstar | Renault Benefits From Scale Derived From Alliance With Nissan and Mitsubishi

As part of the Renault-Nissan-Mitsubishi alliance, Renault owns 43.4% of Nissan, while Nissan owns roughly 15% of Renault and 34% of Mitsubishi. The alliance is structured as a partnership, with each company operating as an individual entity. Combined, the alliance stands as one of the largest global automakers. The companies benefit from increased scale, purchasing power, and the ability to share vehicle technology and platforms. The group is governed by the alliance board of Renault-Nissan BV, which is 50% jointly owned by Renault and Nissan. The Renault-Nissan alliance jointly owns 61.09% of the parent of Russian automaker AvtoVAZ, which makes Lada, the country's best-selling brand. Renault also owns 99.4% of Romanian automaker Dacia, 80.0% of Samsung Motors, and 1.55% of Daimler. Nissan holds a 34% stake in Mitsubishi Motors and 1.55% of Daimler. Renault has successfully organized these companies into an integrated global alliance, sharing purchasing, information services, research and development, production facilities, vehicle platforms, and powertrains.In the Western European new-car market, Renault has the third-largest share, trailing leader Volkswagen and second-place PSA Peugeot Citroen. To its detriment, Renault has only had limited exposure to China, the world's fastest-growing auto market, but upon the formation of a joint venture with Chinese automaker Dongfeng, local production began in 2017. Nissan has successfully penetrated the Chinese market, annually selling more than 1.0 million units. In Brazil, Renault targets a market share of 10%, up from 7.5% in 2017, and has launched an all-new line of SUVs in the country. Renault also has production facilities in Brazil, India, Russia, and Turkey. Through its own operations and through those of its alliance partners, Renault has a solid presence in Eastern Europe, South America, and South Korea.