When the Renault-Nissan alliance was formed in 1999, we had visions of new, Japanese-built, French-badged cars entering the US market in droves. Six years later, that prospect seems less likely than seeing congressman Tom Delay strolling along the Champs d'Elysees with a Vogue model on his arm. Still, the relationship, and a second between Peugeot-Citro n and Toyota have yielded benefits for all involved.
The Renault-Nissan partnership has had little impact on the balance of product in places like the US and Japan, where Renault is barely a footnote in the car market. Behind the scenes, however, the two companies have reportedly cut costs and seen vital operational benefits by merging several back-office corporate functions without merging companies.
In the case of Peugeot-Citro n and Toyota, benefits are more visible in the product realm, in the form of the tiny, 51-mpg Citro n C1, Peugeot 107 and Toyota Aygo. A production agreement between the companies, formed four years ago, meant the cars' design and engineering functions were completed simultaneously, with Toyota providing the platform architecture and three-cylinder gas engine, and PSA developing most internal components and a diesel engine. Other benefits? The agreement gives Toyota a possible wedge into the European market, where it is weak relative to its dominance in the US and Japanese markets, and PSA gains access to Toyota's advanced small-car technologies and production superiority. The three models, which will be built in the Czech Republic, are slated to go on sale in Europe this summer.
Ghosn to steer Nissan while CEO at Renault [Expatica]
2006 Peugeot 107, Citro n C1, and Toyota Aygo [Automobile]
Tiny triplets hatched [Autocar]
Related:
Toyota s Frisky Aygo-go [internal]