Nissan Motor Co. said Wednesday its alliance with Renault SA and Mitsubishi Motors Corp. calculates an overall synergy effect of 5.7 billion euros ($6.7 billion) in fiscal 2017 due to cost savings and other benefits, and aims to reach over 10 billion euros by fiscal 2022.
The figure for the past fiscal year to March 31 is up 14 percent from the previous year, and reflected for the first time the full-year inclusion of Mitsubishi Motors, which joined the Nissan-Renault group in October 2016.
Nissan said the alliance benefited from sharing research and development costs, car components, plants and vehicle platforms as well as contract negotiations.
"The alliance has a direct, positive impact on the growth and profit of each member company," said Carlos Ghosn, chairman and chief executive officer of the alliance, in a statement.
The Japanese-French alliance logged total sales of more than 10.6 million vehicles for 2017, becoming the world's largest automotive group in terms of sales of passenger cars and light commercial vehicles, Nissan said.
"Under the Alliance 2022 mid-term plan, the member companies forecast to sell more than 14 million vehicles (annually) by the end of the plan, of which 9 million will be built on four common platforms...and extending the use of common powertrains from one third to 75 percent of the total," the joint company statement said.
Under a capital alliance formed in 1999, Renault holds a 43 percent stake in Nissan, while the Japanese automaker owns 15 percent of Renault. In 2016, Nissan acquired a 34 percent stake in Mitsubishi.