Alliance Press Conference – December 6, 2023 – Velotype
Good morning um on behalf of the free CEOs uh on my behalf I’m uh very happy to welcome you here in this uh headquarters of Renault um and welcome also uh warm welcome to those who are on the line now and they can hear us I guess in Europe um like in Japan
As you probably know we hold regular meetings of our alliance operating board which uh I have the honor to share we happen to be in Paris today um we travel to Japan every two months and we hold our meetings uh in Japan and today it’s in France and we thought all together that
It was a wonderful opportunity to uh have a sharing with you on the good news of the alliance I’ll also go tell you where the status is today uh almost one month after the setup of all agreements and also to share with you uh exciting perspectives as we had announced in
February 23 uh our alliance is taking a new step and this new step is totally based on its historical fundamentals respect for cultures respect for the specific interest of each company and of course Global Corporation and as you probably know the alliance fundamentals also include its
Common assets there are so many now that we tend to forget about them but please keep in mind for example when we talk about the platforms that 60% of the vehicles from the free companies are used on Alliance platform and when we announce for example the new
Senic for Rena or the future replacement for the dukee in the UK for Nissan we all have to have in mind that they both use Alliance cmf EV platforms so the alliance is deeply rooted and we tend to forget about it because it’s becoming natural ladies and gentlemen uh based on its
Fundamentals the alliance does not stand still it is obviously evolving it has always done throughout its already long history 23 years already it is evolving it is adapting adapting of course to the new geop political political and the macroeconomic context we all know that which is marked by globalization de
Globalization and the development of very strong and very differentiated Regional strategies we all have in mind um the American inflation reduction act for example or in Europe the decision to switch to EV by 2035 In This Very uncertain world we have focused our new alliance on agility and
Opportunity I’d like to stress that the alliance is a formidable ecosystem that operates on several levels the alliance of deals The Alliance of sharing and the alliance of breakthrough opportunities in very simple terms when I mention the alliance of deals is just when one member of the alliance develops
A car for another member is that simple as that I have in mind the Nissan Town star designed and manufactured by Reno alongside the conu and it is one of many examples of such corporations that you can see on this busy chart and the CEOs will clearly go further in the
Description of this document when it comes to the alliance of sharing it’s all about members that can share platforms Technology Solutions for example Google automotive services also one member can use Services created by another for example mobilize Financial Services when it comes to the alliance of opportunities have in mind that one
Member takes initiative leading the others totally free to take advantage of it if they wish or not and in that respect aair is a wonderful example and we are of course very pleased that Nissan and mitsu Mishi BOS Corporation will become both customers and shareholders which by the way is totally
Unprecedented in the alliance history I could also mention Nissan’s expertise in all solid state batteries which obviously would be good used by any alliance members so ladies and gentlemen we have come a long way in the last four years in the face of the crisis I am
Pleased to have spared no efforts to ensure that we regained all the transparency and trust between us trust with so essential in this Alliance and without which nothing can be done so now we clearly all heading for the future looking at the same direction we should now go a bit more
Deeper in what my words have given you in introduction and the CEOs will now take the lead to go through all the major aspect that I think we should share with you we will then have a Q&A sessions and uh as we speak now I will leave the floor to usasan Usid good morning everyone thank you mral for your comment as Nissan we strongly believe that our next phase of collaboration with Reno and missish MERS will create Mutual benefit in many areas of Innovations when we announced next chapter of this partnership earlier this year I said we must collaborate with
Urgency to meet fast changing industry Trends if we address these Trends together utilizing our respective strengths we will unlock new growth opportunity and create long-term value for Nissan and our partners this approach is fully aligned with our Nissan abion 2030 and will be a strateg IC pillar for Nissan as we move
Forward to be a more electrified and even more innovative business it is an an approach that we’ll see Nissan provide our Market expertise our global scale and exciting Innovations to support the future success of the alliance this approach will be applied both globally and in key regions where
We are working on high value project with our part Partners as we announced earlier this year in London our high value project are focused on Latin America Europe and India India will be touched by look later these project could be replicated potentially in other parts of the world
Where Nissan has expertise or where we can levage renal or mbishi strengths we already see that Mutual benefit of this collaboration in Latin America where we have several ongoing corporations we will enrich our lineup by tapping into renal expertise in Halon pickup recently revealed under the name
Nagala in The Same Spirit Nissan will provide our proven capability in our one toown pickup namely our Nissan Frontier to help Reno extend its planned presence in Argentina the regarding another of our Flagship in Latin America we will base on the next generation of our Nissan kicks on the cmfb
Platform this Mutual benefit will apply in electric vehicles as well together we will develop two new electric vehicles for Latin America markets using the common modu family for an empti level a segment EV I’m confident our a use of partnership projects will deliver a major benefit in Europe too here in
Europe Nissan is already ahead in electrification a few weeks back we announced the major step in Nissan’s Europe electrification with additional investment to produce the zero emission successors of the kashai the dukee alongside the leaf the new Juke and the new Leaf versions will be based on cmf
EB prodct form we will partner with Renault to support our electrification strategy with the development of the deplacement of Micha by ampair by harnessing renold capabilities we will complement our strategy to meet our own electrification targets which is to achieve 100% electrified cells in passenger vehicle by physical year
2026 we also electrifying light commercial vehicles too and this is why we are pursuing our long lead time partnership with renold in the B2B vehicle segment we will utilize renold’s all new generation of electric vans to address new mobilities for goods and passengers this new vehicle is expected
To be the first softwar defined Vehicles this partnership benefit EX beyond the products and platform our new partnership approach also applies to strategic Investments and aftermarket Technologies this is why we confirmed to become a strategic investor in ampair the new electrification business launched by Reno the Innovations coming from aair in
Areas such as software and connectivity will strengthen Nissan’s presence Beyond Europe as we may utilize these Technologies in other market around the world this model of collaborative expertise and mutual support will also be applied in EV charging infrastructure and in battery recycling and reuse an area where Nissan is a global
Pioneer we expect to gain scale in important areas of sustainability and are considering to invest in the F the future is NE which is renold’s new entity developed devoted to the circular economy to comply efficiently with the new European regulations in this area before I hand over to Katan let me
Conclude by saying that I’m confident we can work together in new and existing ways to realize Mutual benefit as partners this will enhance that delivery by each member company of their own strategies for Nissan this means reinforcing our ambition 2030 goals our vision will see Nissan introduce 27 New electrified
Models by 2030 and we’ll see as move forward with new vehicles powered by all solid state batteries this is another breakthrough technology that could be utilized in future by Renault and Miss Bishi as well these areas of innovation and expertise really will deliver Mutual benefit I am certain of this this
Means that our partnership is entering the next period in a stronger position to face the disruption in the automotive industry and with that I will hand over to Katan thank you Thank you very much Idan good morning everyone first of all we mitsubish Motors would like to welcome the progress on the alliance toward our future development and ex express our gratitude to all of our stakeholders we have supported uh who have supported us the business environment of the automotive industry is constantly changing
With many developments occurring in various locations simultaneously for this reason it is uh essential that the alliance members level their unique qualities and strength in order to adapt both quickly and flexibly we are confident that the progress being made on this framework or will strengthen the partnership between
The three uh members of the alliance including uh Mitsubishi Motors and will lead to sustainable growth as part of our commitment to F further strengthen our alliance and accelerate the electrification phase of our business Mitsubishi Motors will invest up to 200 million euros in ampair we have seen numerous successes through our
Alliance partnership and we are excited to deepen our collaboration as we aim to expand our EV lineup at the uh First Step a uh will supply a c segment SUV BB on an oem business in the European market in Europe as you know we have already started selling the ASX and the Cod
Which are o best models provided by Reno they have been well received by our customers and we are considering the introduction of additional new OEM models from Rena we are also planning to introduce the outa pH a model that combines Alliance technology such as cmf CD platform with
Our own pH technology to the European market together with L groups omem model uh this will make our European business even more sustainable looking at our plans for other regions we are planning to expand our product lineup in North America through cooperation with Nissan in Japan Mitsubishi Motors and Nissan has a long
Track record of success in working together in the K car business this joint development program for K cars has been a major success for both companies and the kar EV produced through this joint development have become the bestselling EV in Japan we are now considering further collaboration with Nissan in the area of
Electrification frame development and in region such as Asian and oania where missish Motors play a leading role while management resources are limited uh by concentrating them in the asan and Oceania regions the core of our business we will strengthen our business foundations and strive to meet the expectation of all our customers in
Every regions for Europe North America and other regions will actively levage the technological strength of our alliance members for Mitsubishi Motors the alliance is a framework that provides opportunities for each member company to achieve further growth by leveraging each other’s Technologies capabilities and Market position we are confident that the new
Framework will uh bring greater stability and success to all three companies thank you very much let me hand over to Luca who will give his views on our Cooperation so thank you dear kosan so good morning uh good afternoon uh everybody so it’s as you see it’s great to hear midan and Katan telling how much value our alliance has it’s uh in its new setup um to basically how much value is bringing to all the companies to
Mitsubishi Motors to to to Nissan and and of course too uh a few years ago we were all facing new challenges in this cooperation we had to navigate our alliance out of very very difficult situation uh as you may remember we had to redesign it making it fit for a world
Of uh unprecedented volatility we we needed to ensure it serves the interest of the three companies that have each of them to adapt their own uh strategy to their own geographies and markets and priorities so I actually am very very proud uh that we made that uh to the
Project uh you know of a new alliance in the future turning it into a booster of I think resilience uh and Innovation that’s also important for the three companies so over the past three years uh of course I have been personally very much focused on you know
Fixing Renault with the team because it was undergoing one of the deepest crisis uh of uh its history and we launch what is probably one of the deepest strategic shift in the last you know few decades for our company so to tell you the TR the allias was of course a priority but
We had many many things to do at the beginning uh the risk in that situation uh where everybody was facing challenges uh you know left and right is that uh you is to let Rena and the alliance drift apart uh today it’s I think it’s
Clear that this was not the case uh so together with our friends uh from Nissan and Mitsubishi Motors and thanks also to all your effort and I’m not going to forget Jean Dominque who played a big big role in all of that we have managed
A reshuffle of the alliance as deep as I think the transformation that is undergoing in the R Group um having several planets making their own Revolution uh at the same time is the best way to make sure that they keep aligned and and together and that’s actually what happened uh the best proof
Is that Nissan and and Mitsubishi Motors have already jump on I would say on the leading wagons of the Renault group Revolution uh Nissan and Mitsubishi are embarking into on on the aair project uh that’s great they are investing up to 600 million uh for Nissan and up to 200
Million for Mitsubishi uh accelerating aair technological and uh and cost road map and I I think for us further due risking it’s its business plan uh both companies are also and this is also important uh are also unpair clients uh starting with the future iconic compact
TV for Nissan and the first pure uh electric CSU for mits Bish Moto as the two Co already uh underline and the advantages for them are I think are very clear uh because by using aair techn platforms and uh technology Nissan and Mitsubishi would save development cost
Obviously on the upper body but it would represent I would say you know around 50% of development cost reduction respect ly for the car so it’s a massive Advantage for both companies to get competitive products in in in the European region Nissan is also considering taking a stake in the
Futures neutral uh this is another pillar of our Revolution uh on Clos Loop recycling for production scraps battery and end of life cycles uh and sorry end of life vehicles uh with it I think Nissan would join a business that already generates today for for no around 1 billion of turnover and this
Figure will have to double in the next year according to our plan so Nissan obviously would benefit from neutrals broad coverage of the circular economy uh value chain today is around 50% but we are planning 90% in a in in a few years of coverage so a business that is
Actually growing and on top of that there is the opportunity for Nissan to take a head start and this is very important because it’s not very clear to everybody in anticipating upcoming circular economy regulation in europeo that are very very strict and neutral gives us you know an advantage in that
Because it’s already operating and in turn Nissan can bring a sign significant contribution for example by developing with neutral two common hubs in in Europe and in UK for battery recycling and end of life uh vehicles uh Nissan is also meant to be a client of
Horse uh which would Supply 12 plant of Nissan with six families of gear boxes and engines for a half a million parts per year at least this is what the numbers are saying uh and it’s also leveraged the potential of mobilized this is actually an historical cooperation I would say uh for financing
Dealers and for customers and for providing insurance and services it already represent a big chunk of you know of the sales of Nissan because of the long-term cooperation and it will continue on top of it there is much more room for collaboration on the EV value chain for example with the charging at
Dealers uh project the fast charging station network that Renault the Rena is deploying so I I think there is no doubt that F opportunity will arise even even there and finally uh Nissan has shown interest in having an all new uh genuine EV or native EV lcv being developed for its brand
Reducing the and this product is a very revolutionary product that we are planning for 2026 uh with the target of reducing the cost of users for its professional uh customers by up to 30% uh if Nissan had wanted to do that on its own probably it would have
Represented an investment that you can measure in in more billion than hundred of millions of of Euro so just to give you very concrete example of what it means for them and we are very happy to you know to provide this opportunity and for the Ral group of course it’s an
Opportunity to optimize share R&D and especially important industrial assets because that vehle will be produced uh here in France at the beginning I would say no one can doubt that we have now turned the alliance into something that is bringing much more than just uh scale to the Rena group so it’s right
Combination of power on one side so the size and and the agility I want to you know take the opportunity in front of everybody to thank Idan and Katan for their trust uh and uh having you guys on on our SES dear friends uh as key players of the Rena group metamorphosis
Into next Generation automotive company as we say here is I think a very good sign for us and it shows that uh also that we are in a good direction because otherwise you would not be following us on some of the projects but the most important thing for me uh it’s uh the
Base of our new collaboration is the fact that we’ve been reactivated business operation like it didn’t happen for a long time but like it was the case at the beginning of the alliance uh identifying cing and planning initiative that will benefit the tree companies every time so since February we have
Already started to activate this project which is and Katan have touched upon them so talking about latam and and Europe uh I will only mention you know another big project which is India this is one of the as you know one of the biggest major geographies where we can
Collaborate uh it’s a booming Market that’s also going to be uh you know very competitive export Hub and where we can leverage highly Skilled Manufacturing R&D and and software you know uh let’s say software capability we have uh ongoing discussion to address the company opportunities that we have there uh for example Nissan
Aro could develop uh you know I would say up to eight vehicles in India including four SUVs and two uh electric vehicles and maybe uh more than that so all these projects are going to provide a we think a powerful boost to the Rena group’s International Ambitions helping
Us to improve our production capacity and to optimize our competitiveness uh everywhere um I think the alliance is moving much faster now and the most important thing is that we have recreated a I would say first of all trust amongst ourself and uh which is important it’s a base of
Any relationship and uh positive uh very positive Dynamic amongst the operational team everywhere in in the market and at the air quarters so Renault Nissan Mitsubishi motor have we think set up a lean and transparent governance to continuously identify and decide on new projects uh of course we have as Janik
Said we have our monthly steering meetings and uh we also have a b anual uh that’s what we decided Tech showcase where all the three companies will present the new technologies and research that the other partners can join uh you know it could be on you know everything could be from artificial
Intelligence and you know the the a solid state battery was mentioned before so we’re not talking about nitty grey things but you know trying to show each other what we are good at and and po potentially exchange so the condition I think are there to create uh and size
New opportunities to come so and now I’ll leave the floor to our chairman Jean Dominque for the uh Q&A question thank you very much for your attention okay there we are okay so it’s up to me now to open the Q&A sessions so you’re all welcome
To raise your hand in the in the room or perhaps signal your your questions on the line I’d be more than happy to uh sort of spread the word to uh everybody here in the room so there is one question here in the room please go ahead good morning Jil
Gom from Reuters I’ve got a few question regarding the rebalancing of the alliance can you tell us what is going to happen next year regarding the sell of shares uh in the in the framework of the agreement of February uh regarding uh makan uh have you already decided what
You will do when the the Reno shares uh the Nissan shares sold by Reno will be offered uh for sale and I’ve got a another question for Mr Deo Reno has had a long lasting problem with the core value uh seen by the market which is negative uh investors have been calling
For a long time for a simplification of the Aline structure to to have a better reading of uh the real value of Renault do you think that today’s announcement and the the the way you present the coming projects of the alliance will help uh the market have that
Simplification thank you okay so I think we we’ll go in many questions in in your in your words uh first the this rebalancing issue uh is is I would say behind us now because the agreements have been set uh in July and set up already in beginning of November so it’s
Now I would say behind us it was absolutely necessary that this situation occur because it was one of the conditions we had in mind to restore full trust between the companies that feel that they are I would say treated on an equal basis with respect as I said all
Cultures and uh each company’s uh Destiny so so what that means is that uh it is now behind us and we can really concentrate on operations and I think the CEOs have been very uh clear in their speeches on all these operations that are now taking place because it was
One of the conditions to get there uh without any frustrations any backgrounds and all that sort of thing it’s now behind us and it’s very happy that we are here uh in that situation now so when it comes to your question of sales of shares you know that we have said
That that it would be possible in the future they we’re totally free to do so for those who are in the fiduciary Reserve um we will decide when it’s time when it’s a good opportunity and of course we will decide that together uh in perfect uh I would say
Link between the uh the other CEOs and not Nissan of course so so just you know nothing changed from what we said said before it’s in our hands to decide when that would happen and uh we will of course tell you uh at the right time so
On this issue I think it’s clear there was a question for for youan and for Luka yeah thank you for the question maybe I would like to touch a little bit about the uh rebalancing I mean I I’ve been very consistent from the last February when we had this announcement of the
Framework agreement um as you may be aware the world is moving very fast it’s not the same Pace that we are expecting in the past and we cannot continue the way we are doing the past for the future growth for these companies then therefore the alliance has to go to the
Second step and that was always always a consistent message that we are delivering to the market if you look at the world today for instance Nissan portfolio we have us we have Japan we have China and you know what is happening in China right and we have
Europe it’s very fast moving and those disruptions you see the fragmentation everywhere and therefore we need to go to the Second Step therefore we had this discussion in the past one and a half year and we want to go glow by the each company and how we can levage the
Alliance asset for the each company to grow so that is a main uh message I really would like to mind back again and we need to challenge under this I would say challenging environment that we are facing as a industry uh when it comes to
The uh share of course this is if that happen we would like to see what we can do as a Nissan as the best option for us yes that is what I can say today but to answer to the last uh to the last question on the you know the on the core
Value I mean it’s not up to me uh to decide uh what is the core value of the company it’s my job is to actually make sure that uh we do the right things so that the investors and the market understand that there’s a lot of
Substance in Rena so we’re doing a lot of things uh aair you know we’re doing you know a lot of uh things that shows the advantage of Rena as on some of the value chains so hopefully one day the market will recognize this for sure this movement on on the alliance I think
Could help but uh I actually don’t know what could be the reaction of the thing we didn’t do do that for for the core valuation we did it for what iasan said that we had to move uh Alliance to chapter 2 uh and and find a setup that
Will enable us to be more effective and fast uh and concrete uh so I’m sure that uh you know what we will be doing uh with the alliance uh will be seen by the market also from some of the you know results and consequen of the project
That we are undergoing because I mean we don’t want to make a given number on that but uh but let me say two things one is what we presented today if we are able to do it and we will right it’s uh in terms of size impact from a business
Point of view much bigger than what we have been doing the last 10 years in the alliance this is the fact okay we don’t want to announce things because then we get caught into you know try always to prove Pro the thing but this thing is
About a lot of money that we can potentially you know generate if all the project uh let’s say go to and this is I think the most important thing right the most important thing is that we can show that this alliances created business value and you know and then the market will
Follow yeah that’s what I can say clearly I think that answers your question so I think we’ll take another question in the room uh please maybe if would like to uh raise your your hand thank you thank you hi uh Sarah white from the financial times um so one thing this has
Meant has been the end of your joint purchasing agreement and I was just wondering if you could talk us a little bit through that what the impact of not having that anymore has meant and to to your point Luca you just mentioned that this is the sort of biggest impact um
That the alliance has had in 10 years it’ be interesting to know comparatively you know is it is it um you know you don’t have that saving number okay um I had one one question for for Nissan because they had been talked that you might take a you know bigger stake at
Some stage in aair so i’ be interested in in you talking us through a little bit your your rationale around that and and you know how you how you sort of thought through that and if you’ll forgive me I have one last one which is a bit off topic but the
EU um looks like it’s going to delay post brexit tariffs um and I was just wondering if you had any reaction that obviously looks like it’s good for for car makers yeah thank thank you okay um the first question I mean it’s it’s it’s a very good question
Because uh when the that sort of news came out there was some misinterpretation I think clearly about the future of the airines and I think we’re here today to show you exactly the contrary um we because of the rebalancing we just are in a situation there notably in Europe where the
Antitrust regulations uh apply and we have to be extremely strict on that uh on that aspect at the same time make sure that operations can uh go through very very swiftly and uh seamlessly so it’s all a matter of organization that’s it because of the regulations please keep in mind that as
Luca the other CEO said we are now totally concentrating on operations and what’s happening actually and certainly you would confirm that is that now we are working I would say in a project mode which by the way was something we had in mind for years and by working in
Project mode we create teams which are organized in a way that they concentrate on focus on these projects and within these projects everything is possible so when it we’re talking about the synergies and all these stuff that we were talking about before please understand that now concentrated project
By project and the sessions that we are holding as we speak because again as I said today is a Alliance operating board meeting these meetings are made for making sure that these projects are running rapidly swiftly with all the synergies necessary so the real change is not what I heard about disappearance
Of the AI the real change is focus and concentration on operations project by project and that’s the way we’re working now I’m telling you it’s far more exciting and effective and I think the CEOs would confirm that maybe you would like I would like add to the the actually we are not
Really Keen about the structure rather what is a deliverable what is the output and I go back to my uh Theory again that the world is changing a lot and it is not the same you know the space in each region each country terms of the edification or customers acceptance and
Also the regulation pieces different so from that circumstances how we can glow our bus is our key point and that’s the reason why that as a project base we still can work a lot with our copulation how we can optimize in terms of the cost so it doesn’t mean that if the structure
Changes that the derivable is going to be a lesson so please make that uh uh in your mind that we are working on the project base as we presented today we further would like to collaborate a lot and we F would like to see what is the
Optimization in terms of the cost that we can deliver because the world if you look at today um pace of the electrification accelerated faster than what we saw maybe it’s a bit different pace by the each region unfortunately and to that kind of business from the global point of view is very challenging
So it should be how we can adapt to each market on the speed on the optimization of the cost that is what we are focusing today um maybe I’m going to say two things building on what tasan said and just to explain this in a very simple way SAR
Okay so in the past there was the tendency of uh doing things together for when in view of finding Synergy but sometimes you know for the sake of doing the Synergy okay and uh we would actually many times uh get to some form of compromise
That was not optimal to each one of the partners that’s the way the thing ended up being with a time what we’re changing now is that we have identified project that are beneficial for all the all the company two company sometimes three companies Etc uh and someone is proposing that
Coming at the table and proposing I want I can offer you a small car EV platform in Europe within a that is very competitive do you want to participate to this thing is that useful for you they look at the number they they say it’s okay and then we will develop the
Car we will get the briefing from what we want from Nissan or from Mitsubishi and we will develop the car that means around the project as johnic said in an environment that is totally antitrust compliant and and clean we will create a ecosystem of suppliers that will serve maybe to
Companies maybe three companies and I can tell you that when we look at the the consequence of this is actually we’re becoming more competitive but it’s a different scheme right it’s not for the compromise it’s just because everybody recognize around the table that that project is optimal for them
Once take the responsibility and develops the thing that’s that just to make it very simple to understand it is the case here it is the case in Latin America would be the case in India or maybe in other places around the world so that’s a story so now to go back to
Your offthe topic uh thing let me say that um we have been as an industry relatively uh Compact and uh and and consistent with the request to the European Authority and to the government to postpone uh the enforcement of the rules of origin uh regulation because of a very simple uh
Reason and the reason is that the European Upstream value chain on batteries is uh not ready as it was assumed at the time when the deal was uh you know uh decided okay so we just need a little bit more time it doesn’t mean that one day this thing will you know
Not be course it has to be because it’s part of the you know of the agreements that were signed between Europe and and the UK but it’s just a a very simple pragmatic and let’s say recognition of the fact that we don’t have uh you know we don’t have the condition to operate
What was decided and this could have for the European industry and of course for the UK automotive industry a big impact that we uh measured at least for from deci side above the 4 billion uh Euro of uh you know of of value and turnover in
The LA in the next two years okay on the next two three years so I hope that uh very pragmatically uh the European Community will recognize that we have this issue and like it happens in many companies in many situation when you know a kind of an idea of a strategy
Plan doesn’t work you might have to delay you have to modify a little bit and and let’s see what happens so but from our side from the industry side and here I’m speaking as a president of the sea it was very clear that all the countries all the brands all the
Companies have been requesting that very very clearly so we cross fingers and uh and we hope that uh you know that the authorities will have simply common sense and and try to you know move the deadline a little bit uh later so that he gives us the time to organize ourself
And all the value chain okay thank you so much uh I think we have now um another question um perhaps on the line Nick jibs uh is uh on the line if you can hear me and uh perhaps raise your question hello yes I can hear you thank
You thank you for taking my question um my question is about the uh platform strategy um how does it how do it split between uh Rena niss and Mitsubishi um in this new Alliance reboots obviously something like cmfb is a smaller platform and therefore suitable for Rena but when it comes to
Cmf the sort of the compact platform who takes control and how does it and where does the responsibility lie in the next As you move into the next generation of platforms okay Luka maybe yeah I can I can answer to that I mean on the let say
Um the cmfb is clear for you that was a platform that was uh you know developed by Rena uh and uh that our partners will be able to use and potentially also evolve uh so and and potentially if needed localize whatever they want this
Is a a deal that will have to be uh you know uh um discussed within the aair strategy future development on the CM F EV actually the this was a co- development of uh of of the the two the two companies Nissan and and Rena and also Mitsubishi was uh you know
Partially involved in some of the things so that was the whole um reason why it took some time for us to get to uh an understanding of how to define the amp perimeter what to put in the whole discussion on IPS con IPS ex now it’s clear
And uh aair owns the platform owns the IP of the platform Nissan of course also and uh what I see personally is that uh we will have to evolve those those platforms um very I would say pretty quickly because uh technology is very evolutionary we actually doing that in
View of uh launching uh you know new generation of cev products Horizon 27 2028 so the whole idea this will work on the development of the CM C from their side we will work on the development of the CMV from our side for sure they will
Have great ideas uh for sure we have good ideas and uh and at a certain point of time we can also share experience but that’s the way the thing is constructed is that clear nick uh no how can to I I sorry how how can um two companies work uh on the same
Platform but from different sides because it’s the it’s a base and everybody develops the thing it’s like I don’t know you have a an operative system based on Linux and at a certain point in time you know you decided both work on it and uh and every every
Company on his side will develop its own functionality it’s it’s pretty it’s pretty clear what is important to understand is that the cmf EV IP is within ampare as much as it is into you know into the Nissan let’s say perimeter yeah well that’s one of the reason why
We also investing in air F we would like to see the evolvement of our joint platform that’s what we are talking about uh again then I would like to say that from Nissan perspective um world is moving we will do the different way in for instance like in China which been
Announced lately and probably further in us because regulation is pushing a lot customers perception is changing so we need to be ready how are we going to grow in each portfolio or business that we are sitting together and we are standing alone sometimes in some different Market uh I really would like
To say that because it’s totally different from what we used to be as automotive industry in five to six years ago we all know that and we need to face the fact on reality and how quickly we can move with the agility so that is what we are doing and that’s what we
Continue to do we need to grow under this challenging uh environment okay well I think that that covers the the question thank you for raising it um perhaps next question in the room yes gentlemen at the at the end of the room hello from
The uh so uh I have a question to uh and Katan so uh just uh thean mentioned about nothing for me maybe later sorry uh so uh the benefit for of the investment to AIA for Nissan and uh Mish so this is a very huge investment and Mr de mentioned that the
Benefit of the cost reduction of the C segment e and then but I think it is very challenging because of the competion is very severe now and so uh so question to what is the benefit for uh the this big investment uh to uh aair and also if you
I may uh do you have any comment on that so uh the uh luno is now uh delayed uh IPO uh from this Autumn to uh next spring so it’s now targeting the IPO next spring so do you have any comment on this delay and then and then just I
Can I can make a comment on yeah and just just one one more question just one one more question about Mr de so you mentioned that the artificial intelligence very important Kil for a and today the EU member countries will agree expect agree to the first world first uh AI regulation in EU
World and then how do you see the impact on the automotive industry aair this regulation thank you okay let me let me first start with that and thank you for the question um as I already explain today that unpair investment would enable Nissan father to make more strong
Strategy to meet our 2030 which sa in ambition 2030 so we are I mean uh we are getting the MLA which is very beautiful car and if Nissan alone to started to invest in this Europe Market you know we said in a uh ambition to that we are going to make um
Huge investment electrified vehicle at the level of the 2 trillion in five years but it’s not enough you know how the market is moving today not only the product but also the regulation so all these aspects that we can benefit by investing to dare as a strategic
Investor and we n also want to grow our presence here in Europe with the collaboration with our partner so for me I think it is a very good choice that we made and we father would like to see how we can make our presence here in this
Market while we are thinking about how what are we going to do in the US what are we going to do in China what are we going to do in Japan and again this fragmented World business circumstances is even making us much more to consider this kind of way of the setup for
Collaboration I mean can you imagine to do the electrified vehicle all over the world alone will be very very challenging that’s the reason why I can be very confident and clear to say that we would like to be as a part of the Strategic investor in
Aair okay may I the reason uh for mitubishi to make a investment in beer is uh number one uh is to enrich the EV lineup and uh uh as uan said uh world is changing very fast and in addition to that a region by region uh requirement
Becomes you know much more unique than before uh because the uh progress of for example like uh uh electrification speed is a different region by region that’s why before or for example there was a one standard but uh now region by region there’s a lot of Regulation and there’s
A lot of requirement and naturally uh just by one company like a Mitsubishi Motors it is impossible for us to uh develop Bev which will cover all the region so or region by region uh no no I will introduce a unique EV that is our mitsubish mot strategy and in Europe I
Decided to rely on AAR and probably in North America I will rely on Nissan and but uh uh as you said success of uh introducing a BB is a cost cut that is uh one of the key for a success so uh in order to become uh by becoming the
Cornerstone uh investor I want to watch how ere can successfully cut the cost and also or you know our main Market is like Asian or asan oania area uh but usually is those region uh follow the European regulation so by becoming uh the Cornerstone uh uh investor uh and
Pair I expect that I can get a lot of information from Europe uh where is a a kind of a uh EB leading market so that is also one of the reason why we investing yeah one more point that I want to touch upon is that as as it was
Part of my speech we’re not only talking about the product and we are looking for what kind of value that we can provide to the customers through the connectivity STV these are you know beyond the vehicle which leads to the level that we are expecting uh uh and
Coming soon in the market and that would enable our corporate purpose andage people’s life so that’s that’s also another very important aspect that we are looking for that’s the reason why we want to be there as a strategic investor to move together yeah that’s clear look
I I think um I think just to build on what my colleagues were saying I think that it was very important for us to see uh Nissan and Mitsubishi investing because that’s the best prove that uh the alliance is moving forward on on you know maybe on on another focus on
Another base so there’s no better prove uh to to see uh Nissan and Mitsubishi believing in the project of aair which is kind of a reinvention of the Renault brand uh and you know uh we we had to you know a lot of discussion about you
Know at what level Etc but I think that we I think we stroke the right balance between on one side in in in the hypothesis of an IPO okay to leave uh enough floating for the investors to make the case attractive for investor but at the same time to to leave enough
Part enough space to for example Nissan uh to have a share that will enable them to have a presence in the governance of the thing with the one let’s say seat in the board and that changes everything right because you are when you have a seat in the board you actually can uh
Influence the strategy you can see what’s going on etc etc and I think that that’s what we wanted from berau we did didn’t want to only get the money from from from missan but we actually wanted them to participate together with us to develop this project right so I think
It’s a very important sign and the the in a way the embodiment of the fact that the alliance is of course evolving transforming but it’s very concrete I would say I want to make a comment on your uh assumption or you know I don’t know let’s say or your statement that we
Have uh the delay the IPO we never delayed the IPO what we always said is that we would put this company in the condition by the end of this year okay to uh uh potentially go for an IPO when the market condition went there that’s
What we said and uh actually one of the steps of the thing is to carve out a company because you’re not going to make an IPO on one thing that is embedded on the rest and we promised that by the 1 of November we would car out on pair
From Renault and we did and there were no problems okay and an IPO is you know a lot of uh I wouldn’t say bureaucracy but a lot of steps that you have to do etc etc so the only thing that we said is we want to put Rena in the condition
Potential to go for an IPO when the market is there we’re doing it you know I’m I don’t know tonight Fight to London to speak to investors because that is all uh you know procedure that you need to to go through when you want to approach this thing right and again I
It’s good opportunity for me to tell you that uh we will not do IPO at any cost right at any value we will do the AP when is right for us because uh we are able to finance the project we have also very important uh you know Partners on
That uh so it’s just a way to yeah accelerate our plan and but we will do it when uh when uh we see that everybody agrees that it’s right thing to do okay on AI uh I think that at the this stage is um let’s say a kind of a proposal
From the commission on thei I think the AI is a big topic very pervasive technology it is very important that the the authorities find a frame a regulatory frame to make sure that there are no deviation abuses or you know or or evolution of this technolog that go uh you know against
The interest of our customers our companies our society so we welcome that we have to see how the things is defined there is another thing which is a little bit more controversial in Europe right now is uh all the discussion around the data act and some of the verticals that
Uh the Europe European Community is or you know that that uh uh is actually undergoing in fact the data Act was proposed and uh and uh and we know the frame and we accepted it as an industry like all the other industry what we actually kind of resist to is the idea
That we would have a specific regulation for the automotive uh on on data usage that will allow anybody to enter our cars and to suck the data because this is we think against uh you know the safety of that we have to ensure to our customer it is uh against uh you know
Privacy for our customer that we have to protect and it’s actually against our business because we are the ones that are putting the technology in the car and creating the condition for the cars to produce data so on that one there is much more debate right now and let’s say
Officially as a sector we actually don’t welcome such vertic verticalization of the data act we think that the ATA data act in general is good but uh we don’t think we we need an additional regulation uh for uh for the automotive industry here in the European perimeter
Very clear answer I mean obviously we we all need some regulations but we need to make sure that it doesn’t impair or toward the competitiveness of our industry in Europe compared with others I mean that’s all about what you just said LCA um I can only just witness the
Fact that as aair is concerned uh all the steps have been done in the Runo group that for the success of the uh I would say this entity um the the the governance issues uh that are led by the board of Rono in that respect are all
Done uh I would say the all steps have been taken um there been hard job within Reno within the governance bodies and it’s all now smooth and ready so I honestly as Lucas said we we are perfectly on time the rest is a matter of market so I would just want witness
The fact that it’s really a very strong strong job that has been done so so we have another question here Sophie fa on the line if Sophie can hear me uh Sophie could you so but perhaps I can’t hear you make sure no yes that’s okay yes okay good morning it’s just a
Clarification question uh I was wondering if Ren trust sells desent shares will it have to change the valuation of the shares like uh account them Market to market value or whatever the the price of the sale is does the the price of Nissan share in the trust and in Renault accounts Remains the
Same yeah this this a question about the um the the valuation of the Nissan sh within Renault uh for for the the coming future uh everybody knows today that there is a discrepancy between the value of uh the the Renault the Nissan shares in within Renault balance sheet and the
Market price this is will be taken into account uh when when time comes and when the sales will be decided so this is a progressive issue um from my point of view uh I think that everybody has that in mind already and if we have to um
Modify the value of course of these shares in the balance sheet when it is accountably uh correct uh well then the we’ll just have to recognize it and and that’s that’s I would say uh something that is already in the market everybody knows that there will be in my mind
Absolutely no consequences of that because it’s just uh already in the in the in the figures and the I would say in the in the the price of the share so yes the the the recognition will be done on time but in my mind and I guess that
You will agree with that everybody is already aware of that situation and it’s just a past history that needs to be uh I would say swallowed in a way so that’s that’s the way it will happen um is that okay sopie you you got the the answer to your question yes so
To make it clear if you sell some shares you have to recognize the situation yes absolutely yeah yeah absolutely very clear thank you which is basically normal I mean it’s yeah that’s okay uh do we have uh other questions in the Room uh yes we have another question at distance it’s Michael Kau of Automotive news Europe uh if um Michael you can hear me okay please go ahead yes thank you Mr um from a in Germany I have two questions please could you elaborate a little bit on the possible volumes of
The plant operation cast in Europe and India and in Latin America and the second question is about circular economy um which is of course developing worldwide isn’t it a good idea to further develop future neutral outside Europe and eventually will the partners Nissan and Mitsubishi contribute to this
Growth of future neutral abroad thank you so maybe I can answer to both maybe withan on the circular economy worldwide I mean we we actually we we we tend not to U let’s say to communicate on volumes I do that since 20 years it’s a bad idea but uh
You know all the project are sizable enough to justify you know the cooperation the investment so we’re not doing like some kind of Nishi product uh you know if you think about I don’t know what could happen in India we we are localizing we are we are we are
Discussing about localizing the cmfb global access platform of of the Reno group in India uh this is a the India is a is a Nissan plant uh we have agreed that we would uh have there we have actually a plant and then you have a Development Center we’re trying to
Rebalance the participation into into the thing and uh you know in that project Renault brings the platform uh Nissan brings the plant somehow and of course a lot of collaboration on on the field we hope uh but you don’t localize a platform for uh 25 cars you localize a
Platform because you see potential this is is going to be one of the potentially one of the biggest Market in the world we have a billion people there and we have a good technology so so all the pro projects are uh you know sizable we’re not going to communicate at least from
Our side on volume uh I can ensure that they are sizable and this project are profitable uh everywhere otherwise we would not engage into them this is very important thing otherwise we would not engage it’s profitable for uh all all the company on the circular economy and
The future new I I’ll talk to for you know my side on on the on the European side I mean uh future is neutral is already something that uh is alive uh that is there uh with also some industrial assets if you just go and visit flan you will realize that Renault
Has probably taken a couple of years of AD advantage to any OEM in Europe okay on that field by because of necessity because three years ago we didn’t have a plan for FL so with John Dominque we we we we thought that it was a good idea to
Concentrate 2,000 people on this new business that was emerging that is important for for for the future of our companies for the future of the planet etc etc and because of that we work very hard and now we really have some industrial setup that is unique okay and
Uh and we have a business that is running okay there is another dimension is that that is specific to Europe is that regulation in Europe is going to be very specific and it will be very severe and they will come relatively quick okay the whole uh party will start already in
2025 okay to get then in 2030 to to another level and it’s raised right now to do two things of course to be ready uh to comply with the regulation and also potentially to be ready to serve other companies even Beyond you know our cooperation that might need our support
To get through the regulation because they don’t have those assets okay okay so uh at this stage my uh let’s say priority is to make sure that uh neutral becomes a European leader into the thing of course maybe if we do things like Nissan on UK Etc this is going to give
Us scale and and if Nissan Mitsubishi jump into the thing operationally then they bring their materials they bring the battery etc etc we have an internal Market I would say in an alliance that is a good base but uh neutral is built as a company open to serve any other OEM
That needs to you know fix the issue of recycling batteries of recycling materials or Rec recuperating like uh uh Paladium or platinum from catalist and this kind of stuff okay so this is what I can say but I leave it toan for yeah okay so I also want to make a bit about
The newor about India because uh India has been always in the challenging Market you in the past so we are going to reset more change ourself in terms of the not only the structure but uh with additional model that we feel that is something makes sense makes sense
There’s a lot of potential that India can grow in the future then we really want to make ourself to grow in that market therefore we decided in the India to collaborate together to kind of a reset ourself to move forward so um please be a um waiting until that we will make more
Announcement related to the India uh it’s going to be under the plan about the future is neutral yes we are very much interested how we can be participated here in Europe as initially as initially I would say that Manor uh because of the regulation each country is different each region is different we
Also have a similar way of the uh uh plan in other market and of course some of the essence that we can learn a lot from the future is neutral and how we can consider to the other Market but that that is what is I can only say
Today okay well thank you very much I think we’ve reached the end of the Q&A session so uh I would like to thank you all for being with us um we are going to go back to work if I may say so we have to hold our alliance operating board
Meeting now um I think you’ve got all the answers to the questions uh keep in mind at least that all these issues about shareholdings cross shareholdings is now behind us it has kept our minds busy for some time and yours in particular it’s now over which means that we are concentrating on operations
This is the topic of the next meeting that’s going to happen now so um I hope that you got that um word clear because this exactly our life today so um thank you very much again for all your questions um look forward to I think all
Of us to meeting you soon again uh with uh other further good news for the AI thank you very much bye-bye take care we have a
Follow the Alliance press conference live on December 6 2023 at 9:00 AM (UTC), with Jean-Dominique Senard, Chairman of the Alliance Board, Luca de Meo, CEO Renault Group, Makoto Uchida, President and CEO Nissan Motor Corporation, and Takao Kato, President and CEO Mitsubishi Motors.
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