Nissan, Mitsubishi merge parts, financial operations

FOLLOWING the global takeover of Mitsubishi Motors Corporation (MMC) by the Renault-Nissan Alliance in October last year, Nissan and Mitsubishi’s Australian arms have consolidated their financial services and parts and accessories businesses into joint operations.

The Japanese car-makers have announced that Mitsubishi will share warehousing space and logistics support for parts and accessories distribution, based out of Nissan’s new distribution centre in Truganina in Melbourne’s west.

The building, which is currently being built with an estimated completion date of December, will house parts storage, distribution and logistics for Nissan, Renault, Infiniti and Mitsubishi, replacing Nissan’s current site in Dandenong South.

The new site will be managed by independent specialist CEVA Logistics, who took over Nissan’s parts network in 2015.

Nissan Australia managing director and CEO Richard Emery said that the decision to merge parts distribution would be beneficial to both companies.

“This is a milestone development in Nissan’s new alliance with Mitsubishi,” he said.

“This collaboration has opened the door to many important synergies, including the sharing of parts storage, distribution and logistics here in Australia.

“This is an important investment with many benefits for our respective customers and dealers.”

The Truganina warehouse will cover over 36,000 square metres, and was chosen for its proximity to Melbourne’s Tullamarine airport, shipping ports and ring roads.

The two brands will also consolidate their financial services arms, with Mitsubishi rebranding its existing operation into Mitsubishi Motors Financial Services, which will see Nissan take responsibility for the provision of wholesale and retail financial services and products for Mitsubishi dealerships.

Nissan Financial Services Australia managing director Peter Jones said that the merger was one of the first in the new Nissan-Mitsubishi alliance.

“This is one of the first major milestones of our new alliance with Mitsubishi,” he said.

“Outside of our planned collaborations on technology sharing, common vehicle platforms, and joint plant utilisation, today’s announcement is among the first major non-manufacturing-related developments in the new global alliance between Mitsubishi and Nissan.”

The new financial services will officially commence on June 6.

In February, Mr Emery hinted to GoAuto that back-end operations such as parts logistics could be consolidated under the new partnership.

“Over the last 15 years, the alliance has derived significant efficiencies – and even in Australia, even though it is not publicly understood, Nissan Australia does Renault’s parts logistics, a lot of the back-end stuff, just because of scale,” he said at the time.

“Is there opportunity for us as an alliance group to share some of those things (with Mitsubishi)? Sure.”