By Yoko Kubota And Jason Chow
Renault SA and Mitsubishi Motors Corp. are scrapping a plan to
cooperate on producing and selling sedans, a blow to the French
auto maker's plans to exploit its spare capacity and to the
Japanese manufacturer's hopes of expanding its product range in the
U.S.
The move, confirmed by a Mitsubishi spokesperson, is a setback
for the broad cooperation plan Renault, its alliance partner Nissan
Motor Co., and Mitsubishi struck in 2013 to reduce typically steep
development costs.
"We were conducting a feasibility study hoping for a win-win
situation. But it wasn't feasible," said Tetsuji Inoue, a spokesman
for Mitsubishi Motors. Factors that weighed in included costs and
forex, Mr. Inoue said.
Partnerships are central to the Renault-Nissan alliance's
strategy. The two car makers, which aren't formally merged but
share purchasing, manufacturing and management systems, have
traditionally eschewed large acquisitions to grow their
business.
Write to Yoko Kubota at yoko.kubota@wsj.com and Jason Chow at
jason.chow@wsj.com
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